After reaching a seven month low against the euro and the pound, the dollar is slowly limping up. The dollar had suffered a setback with the IMF commenting on the record U.S. trade deficit and the urgent need to correct global imbalances by letting the dollar fall.

Another blow came in the form of the Federal Reserve's signal to end a two-year campaign of raising short-term rates. The currency market which is sensitively linked to the Central Bank and the short-term rates naturally reacted dropping the dollar by another 2 percent. Though the damage is not yet over, the dollar is expected to pick up in a slow but steady manner.

According to Sharada Selvanathan, currency strategist at BNP Paribas in Singapore, " Any correction in the dollar is going to be very limited."

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