It was proposed that the id(x(2)-y(2)) density-wave state (DDW) may be responsible for the pseudogap behavior in the underdoped cuprates. Here we show that the admixture of a small d(xy) component to the DDW state breaks the symmetry between the counterpropagating orbital currents of the DDW state and, thus, violates the macroscopic time-reversal symmetry. This symmetry breaking results in a nonzero polar Kerr effect, which has recently been observed in the pseudogap phase.