Hedge Funds Pivot to Bearish Dollar Bets on US-Iran Talks Optimism

The prospect of a possible peace deal have seen the dollar unwind almost all its war-driven strength. — The prospect of a possible peace deal have seen the dollar unwind almost all its war-driven strength.
Photographer: Dimas Ardian/Bloomberg

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By George Lei and David Finnerty

April 15, 2026 at 8:45 AM UTC

Updated on

April 16, 2026 at 1:00 AM UTC

Hedge funds are increasingly downbeat on the dollar as the prospect of a two-week ceasefire extension between the US and Iran sap the currency’s war-driven strength.

Investors added to their bearish dollar trades this month through April 10, based on a proprietary trading model from Morgan Stanley.