(Bloomberg) — The dollar is heading for its biggest weekly loss in three months as investors start to question the so-called Trump trade that has driven gains in the currency since the US election.

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Bloomberg’s gauge of the US currency slipped 0.2% Friday, extending this week’s decline to 1.1%. The greenback has weakened against all except one of its Group-of-10 peers this week, with its biggest declines being against the yen.

“The market is still trying to find the narrative for the US dollar,” said Mingze Wu, currency trader at StoneX Financial in Singapore. “We expect sideways volatility now before Trump’s inauguration in January, where we will then have a clearer US dollar direction once he announces his policies.”

An eight-week rally in the US currency has stalled as social media posts from President-elect Donald Trump have started to rattle financial markets, and concern has grown that his policies may end up hurting the world’s largest economy. A Citigroup Inc. index that tracks dollar positioning among currency funds climbed to the highest level since August 2023 this week, suggesting long positions may be overstretched.

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