The recent surge in the U.S. dollar will last fewer than three months, according to a majority of foreign exchange strategists polled by Reuters who said the greenback would have a roller coaster ride in the run-up to the U.S. presidential election.

In September, the dollar rose by more than two percent – its best monthly performance this year. But the greenback is still down more than three percent in 2020, a loss which was not expected to be recouped over the coming year, according to the Reuters poll of around 80 strategists taken between September 28 and October 5.

While last week's ill-tempered debate between President Donald Trump and Democratic challenger Joe Biden reinforced concerns the outcome of the November 3 presidential election could be questioned and boosted the greenback, hopes for U.S. stimulus have had markets in the mood for riskier bets.

The expected pull and push in the currency market in the lead up to the election was underscored by the wide range of forecasts in the one-month-ahead predictions compared to the previous month.

While Trump's positive test for COVID-19 and data on U.S. currency futures positions point to upside potential in the dollar's recovery, nearly three-quarters of analysts, 54 of 75, in response to an additional question said the greenback's recent surge would last less than three months.

That included 13 respondents who said the dollar's run-up was already over, while the remaining 21 predicted it to run for over three months.

"The outlook for the next month or so is messy to be honest, because of the U.S. election ... but the dollar will benefit from the ongoing political uncertainty in the next few weeks," said Kit Juckes, head of FX strategy, at Societe Generale.

Besides, the yuan inched up against the dollar on October 1, underpinned by upbeat manufacturing data, with the Chinese unit on course for its best quarter since the global financial crisis in 2008.

China's factory activity extended solid growth in September, according to both official and private surveys, as the nation's crucial exports engine revved up on improving overseas demand and also underlined a steady economic recovery from the coronavirus shock.

Apart from the sound economic fundamentals, a broadly weaker dollar and continued capital inflows also supported the Chinese currency.

(With input from Reuters)