US dollar sees strongest investor demand of 2025 amid Japan, France concerns

Published 14/10/2025, 07:36
© Reuters

Investing.com - The US dollar experienced its strongest investor demand of the year last week, according to Bank of America data released Monday.

Hedge funds and asset managers drove the surge in dollar buying, with developments in Japan and France likely reinforcing concerns about short dollar positions, Bank of America noted in its analysis.

Hedge funds primarily purchased dollars against the Japanese yen, Australian dollar, and emerging market currencies, while asset managers focused on buying dollars versus the euro, the report detailed.

The data showed investors also supported the US dollar in options markets, mainly against the euro and emerging market currencies, further demonstrating the breadth of dollar demand.

Bank of America analysts indicated the dollar’s strength might have extended further if not for supply from corporate and official sources, which helped moderate the currency’s gains during the period.

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