Dollar bulls who ran for cover in the past week - as the currency posted its biggest losses since 1985 against the yen - will probably be back soon.
With the U.S. economy still racing ahead, inflation low and interest rates comparatively high, there's plenty of reason for optimism, traders and analysts said."What's really changed?" said Dave Moline, a currency trader at Norwest Bank in Minneapolis. "Such a wide spread between rates in the U.S. and other countries will put pressure on the dollar to squeeze higher."
Friday's losses capped a week that saw the dollar fall 5 percent against the yen - its worst showing since the week ending Sept. 27, 1985 - and over 2 percent against the mark. For some, that means the dollar has no place to go but up.