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According to the Financial Times, the American currency plummeted earlier in the year based on a double-digit deficit and disagreement in Congress over a budget, although in recent months it has been boosted by European debts in Portugal and Greece.
Managing director at ProSpreads Simon Brown said traders are making short bets on the greenback and this behaviour is unlikely to change.
However, he added: "The [dollar] may have had some respite from its prolonged slide against other major-league currencies, but there is doubt as to whether its recent bounce in value is of the dead-cat variety."
David Jones of IG Index made similar remarks, adding that further strength could depend on how the US looks to steer clear of its deficit.
Earlier today (June 17th), Reuters reported that dollar funding costs dipped slightly, with investors said to be resting after a steep rise this week.
Posted by Clive Arneil
