With the divergence widening between U.S. economic prospects and the outlook for Britain, Japan, and the euro zone, experts see dollar strength ahead.
The dollar fell across the board on Wednesday after a report showed the US private sector created fewer jobs than expected last month, raising concerns that recovery has stalled.
John Noonan, Senior FX Analyst at Thomson Reuters says the markets are expecting aggressive easing from the BoJ but there might be some disappointment.
The dollar rallied from one-month lows against the yen on Tuesday, benefiting from a rally in U.S. stocks and investor caution ahead of a Bank of Japan meeting this week.
Brian Jackson, global fx strategist at Coutts, says the Australian dollar should continue to perform well in the coming months as it is very dependent on China, which is expected to produce "some pretty decent growth" this year.
Nicki Hutley, Director of Economics at KPMG tells CNBC's Cash Flow how to play the Australian dollar in the wake of the RBA's latest policy meeting.
The dollar fell to a nearly four-week low against the yen on Monday as softer-than-expected US manufacturing data suggested the economy may have run out of steam at the end of the first quarter.
The euro hovered near four-month lows against the dollar on Friday, beset by political deadlock in Italy and worries huge losses Cypriot depositors have been forced to stomach.
The euro rebounded from a recent four-month low against the dollar on Thursday, a trend analysts see as tenuous because investors continue to fret about the Cyprus crisis.
The euro fell to a four-month low against the dollar on Wednesday, suffering from growing conviction that Cyprus's rescue will prove a template for future euro zone bailouts.
The euro hovered near a four-month low as mixed messages from European officials kept fears alive that Cyprus' decision to tax large bank depositors would set a bad precedent.
A financial meltdown in Cyprus appears to have been averted, but experts say that doesn't mean the euro is out of the woods.
The euro fell against US dollar and Japanese yen Monday as brief enthusiasm brought on by Cyprus' deal with its international lenders swiftly segued into broader fears about the banking sector.
The euro rose against the dollar on Friday, posting its first weekly gain in seven weeks on hopes Cyprus will find a solution before Monday to avert a financial meltdown.
The yen surged against the dollar and euro on Thursday as fears of a financial meltdown in Cyprus spurred investors to sell riskier trades.
Peter Chen of the University of Sydney says the near-embarassing result of Prime Minister Gillard's leadership vote reveals the state of disarray in the ruling Labor party.
The US dollar rallied after a decision by the Federal Reserve to continue its aggressive monetary easing fueled optimism about the US economic recovery.
The euro dropped to near a four-month low against the US dollar on Tuesday and looked poised to extend losses as uncertainty about Cyprus reignited fears about the euro zone currency.
The euro tumbled to a more than three-month low against the U.S. dollar as a bailout plan for Cyprus that will tax bank deposits spurred contagion worries in the euro zone.
Investors are positioned to be short the Canadian dollar and long the Australian dollar. This strategist says the anomaly won't last.