Core Viewpoint - The dollar has shown unexpected resilience, performing well in the second half of the year, contrary to earlier predictions of a continued decline [2][3]. Group 1: Dollar Performance - The dollar is currently the best performing G10 currency, particularly excelling in October [2]. - Despite earlier significant drops in the first five months of the year, the dollar has managed to recover and stabilize [3][5]. - There is a prevailing consensus predicting further dollar weakness, but this view is being questioned as the dollar shows signs of stability [3][5]. Group 2: Market Sentiment and Adjustments - The initial weakness in the dollar was largely attributed to position adjustments following the global financial crisis, with increased investment from non-dollar based investors into US assets [4]. - The diversification trade is still under scrutiny, leading to questions about the sustainability of the dollar's decline [5].