By Vassilis Karamanis, Bloomberg Markets live reporter and strategist

Demand for long exposure in the dollar through options at the back-end of the curve suggests position rebalancing is the main driver of latest spot price action.

Investors were long the greenback in the spot market and at the front-end of the curve until a week ago; BBDXY is now trading at its lowest in more than a month but remains above the April lows

One-month risk reversals stand at 23 basis points, half as much as on April 30; one-year riskies, however, are in consolidation mode and, at 85 basis points, match the average for the past year.