Dollar resilience vexes some traders

Betting against the US dollar has been the dominant trade this year in the $9.6 trillion-a-day foreign exchange market, but the wager is starting to stumble.

- BLOOMBERG NEWS

The world's primary reserve currency is around a two-month high even as the US government shutdown drags on, and traders in Asia and Europe say hedge funds are adding options bets that the rebound versus most major peers will extend into year-end.

Overseas developments have been a key driver, with the euro and the yen falling abruptly this month. At the same time, comments from Federal Reserve officials urging caution around further interest-rate cuts have boosted the dollar's appeal.