New Delhi, Jan. 29 -- The dollar is staring at its sharpest January slide in eight years, following a dismal 2025. While many investors take a negative view on the greenback, some are betting on a rebound sparked by resilient U.S. growth.

The dollar index is on track to close out this month with a 1.7% loss, its steepest decline in the month of January since 2018. Renewed uncertainty around President Donald Trump's approach to foreign policy, concerns about threats to the Federal Reserve's independence, and the potential for a partial U.S. government shutdown this weekend are weighing on the dollar.

Looking at options market activity, it's clear that traders are betting heavily on a weaker dollar. With the euro at $1.19, investors are p...