"The election and stimulus and the continued economic recovery, those three parts, if those are not working lock step, there very well could be a movement to the dollar as that flight to safety trade," said Mackenzie.
Mackenzie is also looking at factors such as Britain's struggle to come up with a plan to exit the European Union as an overseas factor that could also keep the dollar strong.
While the greenback fell slightly on Thursday, after four days of gains, as equities rose on hopes for stimulus, the U.S. currency's rally resumed on Friday as worries resurfaced.
"Yesterday was a calmer more positive sentiment ... then this morning's durable goods show that the pace of growth in the United States is very uneven," said Juan Perez, senior currency trader and strategist at Tempus Inc.
Along with weaker U.S. and overseas economic data and expectations, Perez said dollar demand was also boosted by Washington's failure to create a stimulus package and concerns ahead of the U.S. election.
Top Republicans on Thursday repudiated President Donald Trump's refusal to commit to a peaceful transfer of power after Trump, also a Republican, said Wednesday that he expects the election result to end up being settled by the Supreme Court.
"In times like that when the chaos and havoc and blurriness of the future is so intense and so dense, that's when the dollar is going to rise once again," said Perez. "Markets are always going to be afraid when a strong government does not give clarity about continuance, about stability."
The dollar index, which measures the greenback against a basket of major currencies, was last up 0.31% at 94.601 and was on track for its best weekly percentage gain since the week early April.
With five straight days of gains against Japan's yen, the greenback showed its strongest weekly gain versus the yen since early June. For the day, the yen was lower against the dollar at 105.60.
The euro had its largest weekly fall against the dollar since early April. The dollar, in a six-day rally against the Swiss Franc, showed its biggest weekly rise also since early April against that currency.
For the day the euro was down 0.40% at $1.1627, after hitting a roughly two-month lows.
Riskier currencies fell, with Australian dollar lower 0.28% on the day and down around 3.6% for the week in its biggest weekly decline since the week ending March 20. The New Zealand dollar declined 0.08% against the greenback for the day but showing its biggest weekly dip since the week ending May 15.
Currency bid prices at 3:04PM (1904 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Euro/Dollar EUR= $1.1627 $1.1672 -0.39% +3.72% +1.1684 +1.1613
Dollar/Yen JPY= 105.6000 105.4000 +0.19% -2.99% +105.6900 +105.2500
Euro/Yen EURJPY= 122.79 123.00 -0.17% +0.69% +123.1500 +122.6200
Dollar/Swiss CHF= 0.9285 0.9266 +0.21% -4.06% +0.9296 +0.9251
Sterling/Dollar GBP= 1.2730 1.2749 -0.15% -3.99% +1.2804 +1.2688
Dollar/Canadian CAD= 1.3392 1.3362 +0.22% +3.13% +1.3418 +1.3338
Australian/Doll AUD= 0.7025 0.7045 -0.28% +0.06% +0.7086 +0.7007
Euro/Swiss EURCHF= 1.0799 1.0813 -0.13% -0.49% +1.0821 +1.0792
Euro/Sterling EURGBP= 0.9131 0.9149 -0.20% +8.01% +0.9168 +0.9120
NZ NZD= 0.6545 0.6550 -0.08% -2.84% +0.6591 +0.6529
Dollar/Norway NOK= 9.5780 9.4967 +0.86% +9.11% +9.6151 +9.4833
Euro/Norway EURNOK= 11.1392 11.0858 +0.48% +13.23% +11.1858 +11.0679
Dollar/Sweden SEK= 9.1263 9.0828 -0.07% -2.37% +9.1645 +9.0858
Euro/Sweden EURSEK= 10.6125 10.6195 -0.07% +1.37% +10.6635 +10.5930
(Additional reporting by Gertrude Chavez-Dreyfuss in New York, Elizabeth Howcroft in London, Editing by Louise Heavens, Steve Orlofsky and Diane Craft)
© Reuters News 2020