Jens Nordvig says the dollar will continue its slide in 2021

A picture illustration shows U.S. 100 dollar bank notes taken in Tokyo
Yuriko Nakao | Reuters

The U.S. dollar has fallen sharply from the high it reached during the Covid shutdowns earlier this year, and the extent of its decline in the coming year depends on the course of the virus and the global economic rebound, according to a top currency strategist and economist.

"The ultimate destination for the dollar is a weaker dollar, but when it really gets going it's going to really depend on how bad the lockdowns are over the next few months, and how they roll out the vaccine globally," said Jens Nordvig, CEO of Exante Data. A strong global economy means other assets may become more attractive than the dollar, but if lockdowns slow economic activity, the dollar could hold up better than expected.

The U.S. Dollar index, which represents the dollar against a basket of currencies, is down more than 12% from its March 20 high of 102.992. It's down 7% for 2020.

Against the euro, the dollar has fallen nearly 15% since March. The dollar had surged in a flight-to-safety trade when governments around the world locked down their economies because of the surge in coronavirus cases in the first quarter.

More In Follow the Pros

CNBC ProHere is Jeff Gundlach's ideal portfolio for 2021 that he says is working great
CNBC ProThe biggest investors are piling into the 'future food' megatrend — Here's how to ride the boom
CNBC ProBill Miller says passing on Tesla was one of his big investing mistakes