Options Signal Dollar’s Slide Set to Deepen as Risks Mount

The dollar is headed for its longest losing run in nearly three weeks and options markets are signaling it will come under further pressure as a wave of risks threatens to weigh on the greenback heading into August.

The Bloomberg Dollar Spot Index was set for a third daily drop, falling as much as 0.4% to a session low late Tuesday morning in New York. One-month risk reversals — a key measure of sentiment — shifted into negative territory for the first time in two weeks, favoring protection against dollar weakness. The repricing reflects expectations that bearish forces may dominate again.