The euro is being weighed down by France’s political turmoil, the yen slumped on speculation Japan’s likely new leader may favor slower interest-rate hikes, while the bigger-than-expected rate cut in New Zealand dragged down the local currency on Wednesday.

Hedge funds expressed a bullish view on the dollar against most Group-of-10 currencies, with the exception of the Australian dollar, Daga said. That’s because the Australian central bank’s relatively hawkish policy is supportive of the local currency.

They bought vanilla dollar call options or call spreads against the euro, sterling, yen, and the New Zealand dollar, according to Daga.

A vanilla dollar call option is a standard contract without any complex features, which increases in value if the greenback rises. A call spread is relatively cheaper and caps the potential for profit should the dollar rally.

“Most of the dollar call buying has been in the G-10 majors and the jumps in front-end risk reversals in these currencies are a good indicator of the turn in demand,” said Nathan Swami, Singapore-based head of FX trading for Asia Pacific at Citigroup Inc. A risk reversal compares the price of a call option versus that of a put option.