Options Traders Bet on Pause in Dollar’s ‘Sell America’ Rout

The dollar is trading at a three-year low, but options traders are betting the frenzied selloff in the world’s reserve currency will peter out over the next few weeks.

The greenback has been weakening for five straight months with one gauge of pessimism reaching extreme levels in May. Now, with the Federal Reserve’s next interest-rate decision just six days away, the options market is suggesting a period of relative calm.