The dollar, “which has declined over 9 percent year to date, has weakened relative to foreign currencies as the likelihood of future interest-rate hikes from the Federal Reserve has fallen, along with the chances of pro-growth policies passing in Washington. Maley pointed to the Daily Sentiment Index, which measures futures traders’ sentiment, flashing very bearish sentiment toward the dollar,” according to CNBC.

Related: Dollar Downturn Could be Nearing its End

Year-to-date, investors have pulled nearly $227 million from UUP, a total exceeded by just three other PowerShares ETFs.

Heading into 2017, many bond market participants were betting the Fed would raise interest rates three times, but some market commentators believe two is the appropriate number of rate hikes this year. The Fed boosted rates in March for the first time this year and the third time in 15 months, but a dovish tone following the March meeting muted the dollar’s reaction. The dollar has struggled following the June rate hike as well.

For more information on the USD, visit our U.S. dollar category.

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