On Friday, the Bloomberg Dollar Spot Index fell 0.4%, leaving it down for the fourth week out of the last five.
US President Donald Trump's policies on trade have sent shock waves through financial markets and undermined the greenback's status as a safe-haven, pushing traders to bet against the dollar and allocate funds away from US assets after years of piling in.
Even as many markets have recovered in recent days on signs of trade deals and economic strength, the "sell America" theme appears to remain intact and the dollar gauge is now down more than 6% for the year.
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Both one-week and one-month risk reversals on the Bloomberg Dollar Spot Index point to expectations of further losses in the greenback into and out of the US Federal Reserve's interest-rate decision on May 7. Traders are still paying more for put options that bet on a weaker US currency, than calls that look for the greenback to rise in the coming week and month.
On Friday, stronger-than-expected US employment data Friday showed tariff uncertainty hasn't hit the nation's jobs market yet, prompting traders to trim bets on imminent interest-rate cuts.
Still, traders sent money into currencies outside the US on Friday after China signaled an openness to tariff talks with the US. The Australian and New Zealand dollars were among best performers in the Group of 10 Friday, advancing about 1%.
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"It seems that market is expressing some optimism on the China headlines," said Aroop Chatterjee, managing director for macro strategy and emerging markets at Wells Fargo in New York. "It's clear that dollar longs against Asia FX are being unwound."
Chart: Bloomberg
