Options Traders Boost Long-Term Bearish Dollar Views to Record
Currency options traders are now more pessimistic than they've ever been about the dollar's path over the next year, according to one commonly-cited measure of investor sentiment.
One-year risk reversals — a gauge of how expensive it is to buy versus sell a currency in the options market — fell to minus 28 basis points in favor of puts over calls for the Bloomberg Dollar Spot Index. That mark is the most negative level on record, according to Bloomberg data going back to 2011, surpassing even a level briefly hit at the outset of pandemic-driven market gyrations five years ago.
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