U.S. Dollar Sees Strongest Investor Demand of 2025 as Global Risks Rise
The U.S. dollar recorded its strongest investor demand of the year last week, according to data released Monday by Bank of America. The surge was fueled by hedge funds and asset managers increasing their dollar positions amid rising economic concerns in Japan and France.
Bank of America’s analysis showed that hedge funds mainly bought dollars against the Japanese yen, Australian dollar, and emerging market currencies, while asset managers concentrated their buying versus the euro.
The report also revealed strong dollar demand in options markets, particularly against the euro and emerging market currencies, highlighting the broad scope of investor positioning.
Analysts added that the dollar’s rally might have extended even further if not for supply from corporate and official sources, which helped limit the currency’s upward momentum during the week.
