According to Bank of America's Global Fund Manager Survey for June 2025, institutional investors are the most underweight on the US dollar in 20 years. A net 31-32% of fund managers, representing $587 billion in assets, have reduced their exposure to the US dollar, marking the largest share in two decades. This bearish sentiment on the US dollar has coincided with a 9-10% decline in the US Dollar Index year-to-date. Despite this, net short positions by asset managers and hedge funds have dropped to the second-lowest level in four years, raising questions about whether the short-dollar trade is overcrowded. Meanwhile, European companies are expressing heightened concern about currency fluctuations, the highest in four years. The euro is on track for its worst week since 2022 against the US dollar, driven by market worries over the economic impact of the Europe-US trade agreement.