Dollar’s Bounce Could Be Short-Lived

The US dollar strengthens to recover some of this week’s losses as it gains 0.3% against the euro. The ICE US Dollar Index rises 0.2%. Spartan’s Peter Cardillo says it’s just a bounce that’s unlikely to last. “We’re going to see weakness prevail,” because monetary policy remains lax and huge deficits are expected to shake the greenback’s status as the world’s reserve currency, he says. “We’re going to hear a lot more about the dollar (being replaced by) a basket of currencies,” he says.