The greenback has been appreciating for much of the year as traders anticipate the Federal Reserve to eventually tighten its monetary policy.
“As the Fed steps away from ultra-loose policies, the dollar should gain against the chief beneficiaries of those policies, namely emerging market and commodity currencies,” currency strategists led by Kit Juckes at Societe Generale said, CNBC reports.
However, while most strategists remain bullish on the dollar, some warn against over-exuberance, arguing that a strong dollar can hurt exports, multinational companies, pressure consumer prices and potentially delay Fed tightening.
PowerShares DB U.S. Dollar Index Bullish Fund
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