ANALYSIS- US$ churns as investors bet on growth outside US

"Everybody had been positioned for a stronger dollar" going into the new year, said Jack McIntyre, portfolio manager at Brandywine Global. Then last week, the U.S. Dollar Currency Index, which tracks the greenback against six major currencies, fell as much as 1.2% before paring loses to finish the week down 0.6%.

NEW YORK: Currency market investors are less sure about the U.S. dollar's outlook now than they have been for many months, prompting sharp gyrations by the greenback last week despite red hot inflation data and a hawkish Federal Reserve.

"Everybody had been positioned for a stronger dollar" going into the new year, said Jack McIntyre, portfolio manager at Brandywine Global. Then last week, the U.S. Dollar Currency Index, which tracks the greenback against six major currencies, fell as much as 1.2% before paring loses to finish the week down 0.6%.