Hedge Funds Bet Against Dollar as Investors Weigh Bessent's Fiscal Strategy

Hedge funds are increasing their bearish bets against the US dollar as investors assess Treasury Secretary Scott Bessent's plans to manage borrowing costs and reshape the US debt profile, according to Bloomberg.

The dollar selling accelerated last week after Bessent announced the Treasury would at least double purchases of longer-dated US government bonds through its buyback program, triggering the greenback's sharpest one-day decline in nearly three weeks.

Bearish positioning has also increased across Asian currencies, including the Korean won, Thai baht, Singapore dollar and offshore yuan.