Traders placing record bets on dollar collapse

January 30, 2026

TL;DR

Traders are heavily betting on a continued fall in the US dollar's value.
The dollar experienced its largest single-day decline in nearly a year, reaching its lowest point since February 2022.
Factors contributing to the downtrend include global tariffs, trade frictions, expected Federal Reserve rate cuts, and rising deficits and debt.
Options that profit from a falling dollar are now the most expensive since 2011.
Market sentiment towards the dollar's long-term outlook is more negative than at any point since May 2025.
President Trump has dismissed concerns about the dollar's weakness, stating it is 'doing great.'
A weaker dollar can benefit multinationals and exporters but may increase import costs and fuel inflation.
US Treasury Secretary Scott Bessent believes Trump's economic policies will eventually strengthen the dollar by attracting investment and reducing trade deficits.

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