The US Federal Reserve's apparent 'higher-for-longer' thinking on interest rates, coupled with rising Treasury yields, means that the current rally in the US dollar has further to go, making the greenback "too risky to short", according to a report by Bloomberg.

The report cites hedge funds K2 Asset Management, AVM Capital, and Clocktower Group as all saying that they are expecting the current seven-week rally in the dollar to continue with positive US economic data undermining the case case for monetary easing.

According to Bloomberg, its Dollar Spot Index is on track for an eighth consecutive week of gains, which would be the longest ever run of increases in data going back to 2005.