The dollar’s recent rebound is unlikely to last due to temporary factors such as the U.S. government shutdown and upheaval in rival governments. Speculators’ net short bets on the dollar have fallen, but analysts are skeptical of its recovery. International developments have boosted the dollar, but analysts believe investor reaction may be excessive. A counter-trend rally is expected, with the dollar weakening against major currencies over the next few months. The end of the U.S. government shutdown could act as a catalyst for the dollar, but concerns about U.S. growth and monetary policy remain.
Read more at Yahoo Finance: Analysis-Dollar gains from rivals’ trouble may lack staying power