Speculators cut their net long bets on the US dollar in the latest week to the smallest position in 18 months, according to calculations by Reuters and US Commodity Futures Trading Commission data released on Friday.

The value of the net long dollar position was $9.07 billion in the week ended Jan. 7, down from $14.82 billion last week. This week's long US dollar position is the smallest since the third week of June 2018. To be long a currency means traders believe it will rise in value, while being short points to a bearish bias.

US 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. 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 valued at $4.33 billion, down from $10.98 billion a week earlier.

On Friday, the dollar fell from four-week highs against the safe-haven yen and slid versus the Swiss franc as investors fretted over possible renewed geopolitical tensions between the United States and Iran. A softer US December employment report also dented the dollar.

The recent thaw in trade-related tensions between the United States and China has sapped demand for the safe-haven US currency. Speculators boosted their long position in sterling to 16,510 contracts, up from 12,393 contracts in the previous week. The pound edged lower on Friday, holding near two-week lows against the dollar as a second policymaker joined Bank of England governor Mark Carney in signaling a potential rate cut.