The Bloomberg Dollar Spot Index slipped to its weakest level since Jan 6 and was on track for its worst two-day stretch in about a month. The euro rose to a more than two-week high while the Swiss franc led gains in the Group of 10 currencies. Elias Haddad, global head of markets strategy at Brown Brothers Harriman & Co, said that dollar weakness likely reflects increased hedging by non-US investors who hold dollar securities. Short-dated volatility firmed as last year’s pattern of a weaker dollar coinciding with higher hedging costs re-emerged. Data from the Depository Trust & Clearing Corporation show investors have favoured long exposure in the euro and the Australian dollar versus the dollar since Monday’s open.

Source: The Edge Markets January 20, 2026 15:34 UTC