Speculators cut net long bets on U.S. dollar

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Woman holds U.S. dollar banknotes in this illustration taken May 30, 2022. REUTERS/Dado Ruvic/Illustration

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NEW YORK, June 3 (Reuters) - Speculators' net long bets on the U.S. dollar fell to a five-week low, according to calculations by Reuters and U.S. Commodity Futures Trading Commission data released on Friday.

The value of the net long dollar position was $14.71 billion for the week ended May 31. Last week, speculators' net long position stood at $17.65 billion.

U.S. dollar positioning was derived from net contracts of International Monetary Market speculators in the Japanese yen, euro, British pound, Swiss franc, and Canadian and Australian dollars.

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The U.S. dollar has risen nearly 7% against a basket of currencies this year, helped by a hawkish Federal Reserve and heightened geopolitical tensions that have boosted the greenback's safe-haven appeal.

The greenback's rally, however, has lost steam in recent weeks, as some investors worry that a lot of the good news for the currency is already reflected in the price.

"The dollar has been on an absolute tear for the first four months of the year ... but nothing goes up in a straight line," said Minh Trang, senior currency trader at Silicon Valley Bank in Santa Clara, California.

On Friday, U.S. dollar rose against a basket of currencies, after a better-than-expected U.S. employment report pointed to a tight labor market that could keep the Federal Reserve on an aggressive path of interest rate hikes. read more

JAPANESE YEN (Contracts of 12,500,000 yen)

$9.174 billion

EURO (Contracts of 125,000 euros)

$-7.013 billion

POUND STERLING (Contracts of 62,500 pounds sterling)

$5.836 billion

SWISS FRANC (Contracts of 125,000 Swiss francs)

$2.666 billion

CANADIAN DOLLAR (Contracts of 100,000 Canadian dollars)

$0.554 billion

AUSTRALIAN DOLLAR (Contracts of 100,000 Aussie dollars)

$3.492 billion

MEXICAN PESO (Contracts of 500,000 pesos)

$-0.902 billion

NEW ZEALAND DOLLAR (Contracts of 100,000 New Zealand dollars)

$1.219 billion

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Reporting by Saqib Iqbal Ahmed Editing by Chris Reese and Lisa Shumaker

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