Speculators' net long US dollar position rose to their highest level in about four months in the week ended Oct. 15, according to calculations by Reuters and US Commodity Futures Trading Commission data released on Friday.
The value of the net long dollar position was $20.79 billion in the week, compared with $18.78 billion in the previous week, data showed. The long position was the largest since the week of June 25.
In a wider measure of dollar positioning that includes net contracts on the New Zealand dollar, Mexican peso, Brazilian real and Russian ruble, the US dollar posted a net long position of $20.376 billion from $18.28 billion a week earlier.
The dollar benefited during the week from negative sentiment on sterling, as well as euro and yen weakness.
Also supporting the dollar as a haven were uncertain Brexit negotiations. Britain and the European Union have agreed on a deal to exit the bloc, which will be put to a vote in parliament on Saturday.
A Brexit resolution and progress in US-China trade talks could diminish some of the bullish positioning on the dollar, some analysts said.
In other currencies, net positioning on the yen, another safe haven, turned short this week to 6,641 contracts.
"CTA (commodity trading advisor) type accounts have recently been running a net yen long position but, amid a relaxation in trade tensions, a drop in demand for safe havens," said Shaun Osborne, chief FX strategist at Scotiabank in Toronto.
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