(Reuters) – Speculators further reduced positive bets on the U.S. dollar in the latest period, pushing the currency’s net long position to the lowest since mid-September, according to Reuters calculations and data from the Commodity Futures Trading Commission released on Friday.
The value of the dollar’s net long position fell to $32.25 billion in the week ended May 5, from $34.75 billion the previous week. Net longs on the dollar declined for a sixth straight week.
It was also the fourth straight week that longs on the dollar came in below $40 billion.
The dollar has been hurt by a slew of soft U.S. economic data such as the weaker-than-forecast first-quarter U.S. growth figures released last week, as well as a generally dovish statement from the Federal Reserve.
The Fed acknowledged the soft patches in the U.S. economy last week in its statement after a monetary policy meeting, making it more likely that it will not be ready to raise rates until at least September.
The dollar posted the worst monthly performance in four years in April, losing nearly 4 percent.
To be long in a currency is to take a view it will rise, while being short is a bet that its value will decline.
Net short positions on the euro, meanwhile, fell for a fifth straight week, totaling 190,127 contracts from 197,766 previously. The decline in the negative bets on the euro was helped by the dollar’s woes and easing concerns about deflation in the euro zone.
The Reuters calculation for the aggregate U.S. dollar position is derived from net positions of international monetary speculators in the yen <JPY=>, euro <EUR=>, British pound <GBP=>, Swiss franc <CHF=> and Canadian <CAD=> and Australian dollars <AUD=>.
(Reporting by Gertrude Chavez-Dreyfuss; Editing by Dan Grebler and Alan Crosby)
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