Measures taken by governments across the world to boost ailing economies have encouraged investors to move back into riskier assets and currencies, but selling into rallies may still be a good idea ultimately, analysts said.
Forming Short Positions
Expect further downside for euro-dollar and aussie-dollar, Sharada Selvanathan, currency strategist at BNP Paribas, told CNBC.
"Right now there seems to be a little bit of stability… I think we could see a bias for the upside for the high-yielding currencies," Selvanathan said.
"I think generally we've seen a little bit of risk coming back to the table," as the latest measures by the Federal Reserve and governments across the world helping economies encourage investors, she added.
"I think it would be premature to think this is the peak of the dollar, but … I would basically use these rallies that we see for the next week or so to form some short positions (in the dollar)," Selvanathan added.