The U.S. dollar has found favor as a safe haven destination once again while market players become risk averse in the current volatility.

Concerns are growing that the global economy is tipping toward recession and markets are still recovering from the troubles in the financial sector despite concerted efforts by governments worldwide to restore confidence and thaw frozen credit markets. In such an environment, jittery investors offload assets overseas and repatriate greenbacks to the U.S.

Hence, Lee Wai Tuck, currency strategist at Forecast, believes the buying of dollars and U.S. treasuries will help drive the U.S. unit firmer against the rest of the currencies, except versus the yen.

(Watch the full Protect Your Wealth interview with Lee Wai Tuck on the left)

"I think a good bet is still to be long the dollar and to be long against the yen...( and against) the high yielders as the market is so choppy,"  Lee said on CNBC Asia's "Protect Your Wealth" segment.

On the sterling, which is trading in a range at its recent lows between $1.70-$1.75, Lee says it will still come under pressure as market players are looking for further interest rate cuts from the Bank of England after the recent coordinated cuts of 50 basis points to boost liquidity.

Catch "Protect Your Wealth" on CNBC's Asia Pacific network every Tuesday on "CNBC's Cash Flow," Wednesday on "Asia Squawk Box" and Thursday on "Capital Connection."

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