Scale of Currency Moves 'Unprecedented': Analyst

The scale of the swings in the currency markets is "unprecedented," looking at how quickly the dollar has declined in the last month, Derek Halpenny, European Head of Global Currency Research Bank of Tokyo-Mitsubishi UFJ, told CNBC Thursday.

"The market has been 'to-ing' and 'fro-ing' from one theme to the next," Halpenny said.

On Sept. 13, just one of 45 banks was predicting the euro to top $1.40 over the next 12 months and it happened in 30 days, he said.

"In terms of the scale of the moves we're getting in the forex market, they are unprecedented," Halpenny said.

- Watch the full interview with Derek Halpenny above.

Investors should be cautious in "chasing" the swings in the spot rate, because a lot of the pressure on dollar is coming from anticipation of the "clear signals" the Federal Reserve is giving that it will embark on new easing measuresby buying assets to boost the money supply (quantitative easing), he said.

"The potential (of that move) to be sustained is going to be a lot more difficult among a lot of these free-floating global currencies," Halpenny added.

One economist, who predicted that the euro will return to its high levels back in June when the single European currency was trading at $1.19, forecast that it may end the year at $1.50 because the austerity measures taken by governments in the euro zone are deflationary.