The U.S. dollar saw a broad sell-off on Wall Street on Thursday, and now economists are warning that the greenback bulls may be getting ahead of themselves.
The dollar index, which measures the dollar's value against other major currencies, traded around 81.167 after falling 0.6 percent in U.S. trade Thursday. Meanwhile, the greenback also weakened 0.77 percent against the yen and 0.7 percent against the euro overnight.
Language from Fed members suggesting that the much-anticipated winding down of the Federal Reserve's $85 billion per month bond buying program could get delayed led traders to ditch the greenback, although some of the losses were recouped in Asia trade on Friday.
(Read more: Worst case for Fed taper: mere market 'indigestion')
Clifford Bennett, chief economist at financial services group White Crane Group, told CNBC that even when the Fed does pull back on stimulus, it won't necessarily be good for the dollar, as tapering would imply that the U.S. economy is recovering and encourage American investors to venture overseas.
"We have to remember how much U.S. investors retreated back home during the global financial crisis and the sovereign debt crisis, and really they've left the door open for countries like China to fill the investment gap in Asia and Latin America and elsewhere... the Americans are now coming back into game," he said.