The value of the dollar's net short position rose to $4.19 billion in the week ended April 26, from short contracts valued at $1.85 billion in the previous week. Speculators were short the dollar for a second straight week.
So far in 2016, the dollar has fallen 5.7 percent after gaining more than 9 percent last year. The dollar was on track for its worst yearly performance since 2007.The culprit has been a generally dovish Fed that has been proceeding with caution on raising interest rates given persistent global risks to the U.S. economy.The U.S. central bank held interest rates unchanged on Wednesday and while it left the door open to a hike in June, its statement implied it was in no hurry to follow on from its December rate hike."The U.S. dollar has remained under pressure in the aftermath of the FOMC decision, with a rising inflation expectations and falling U.S. nominal yields depressing U.S. real rates," wrote BNP Paribas in a research note."We expect this process to continue in the week ahead, with softer readings on Monday's manufacturing and Friday's (U.S.) jobs report likely to bolster Fed concerns about slowing U.S. activity."In other currencies, euro net shorts continued to decline, to their lowest in nearly two years. Net euro shorts fell to 39,667 contracts, from 46,917 short contracts the week before.BNP Paribas expects an improving outlook for the euro against the dollar. "We remain long this pair (EUR/USD), targeting a move up to $1.16," the French bank said.Japanese Yen (Contracts of 12,500,000 yen) April 26, 2016 Prior week week Long 97,470 105,710 Short 30,972 33,840 Net 66,498 71,870 EURO (Contracts of 125,000 euros) April 26, 2016 Prior week week Long 99,072 101,211 Short 138,739 148,128 Net -39,667 -46,917 POUND STERLING (Contracts of 62,500 pounds sterling) April 26, 2016 Prior week week Long 40,431 32,765 Short 89,100 87,917 Net -48,669 -55,152 SWISS FRANC (Contracts of 125,000 Swiss francs) April 26, 2016 Prior week week Long 23,990 19,859 Short 14,725 10,449 Net 9,265 9,410 CANADIAN DOLLAR (Contracts of 100,000 Canadian dollars) April 26, 2016 Prior week week Long 37,104 32,473 Short 25,105 25,165 Net 11,999 7,308 AUSTRALIAN DOLLAR (Contracts of 100,000 Aussie dollars) April 26, 2016 Prior week week Long 109,932 97,472 Short 50,392 53,366 Net 59,540 44,106 MEXICAN PESO (Contracts of 500,000 pesos) April 26, 2016 Prior week week Long 34,602 43,925 Short 53,917 58,334 Net -19,315 -14,409 NEW ZEALAND DOLLAR (Contracts of 100,000 New Zealand dollars) April 26, 2016 Prior week week Long 24,459 22,674 Short 17,075 17,323 Net 7,384 5,351 (Reporting by Gertrude Chavez-Dreyfuss; Editing by Chizu Nomiyama and Marguerita Choy)