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Strategists led by JPMorgan Chase & Co told Bloomberg that in the six quarters leading up to September, the greenback averaged $1.34 per euro and 76.6 yen.
John Normand, head of forex strategy at JP Morgan, said in an interview: "The bias will be for a modest retracement in the dollar from current levels. Investors are already extraordinarily long of dollars."
He added that the Federal Reserve may start to discuss expanding its balance sheet before 2012 and that that early next year it could start with the asset purchases.
Despite the gains made by the dollar last quarter, the currency is still worth 22 per cent less than it was in March 2009.
Yesterday (October 10th), the dollar dropped 0.2 per cent against the euro.
Posted by Chris Weaver
