QE2's End, Dollar's Rise? Perhaps

Sheet of US one hundred dollar bills
Don Farrall | Digital Vision | Getty Images
Sheet of US one hundred dollar bills

The dollar could get a boost form the end of quantitative easing, this strategist says - but whether it will last is another question.

Westpac has been selling the dollar against a number of higher risk currencies, says Sean Callow, senior currency strategist for Westpac Bank. Westpac did take some profits on its negative exposure to the dollar index this past week, Callow told CNBC, but noted that Treasury yields are still extremely low, which can't be good for the currency.

So what's next for the dollar?

"There will be a lot of nerves around the end of QE2," Callow says.

"You would think it would be potentially somewhat supportive for the U.S. dollar."

But be careful: absent stronger economic data, Callow believes any positive impact will be less sustainable.

You can watch the whole discussion in the clip, starting at 1:31.

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