The British pound fell after the Bank of England did little to bolster rate hike expectations.
The Australian and New Zealand dollars both jumped on Monday, after a promising China manufacturing survey.
The dollar reversed some of its losses in a quiet session overnight after upbeat U.S. data helped temper the Federal Reserve's dovish outlook.
The dollar sank to its weakest level in three weeks on Thursday after a cautious message from the Federal Reserve.
Currency experts have warned that there will be winners and losers in the foreign exchange markets on the back of the spike in oil.
Ilya Spivak, Currency Strategist at FXCM, says the best forex trade following the FOMC meeting is to short the euro against the greenback and Britain's pound.
Currency analysts to believe an interesting trading opportunity could develop over the coming months.
The U.S. dollar held onto modest gains, having risen broadly after U.S. consumer prices recorded their largest increase in more than a year in May.
The Australian dollar fell more than half a percent against the U.S. dollar on Tuesday after the RBA expressed economic recovery doubts.
The dollar dipped versus the yen, although potentially decisive events such as the Federal Reserve meeting midweek limited movements.
Valentin Marinov, director of FX strategy at Citi, says the Bank of England will raise interest rates in November, though better data out of the U.K. could bring the hike forward.
The dollar was up around a third of a percent against the yen as markets listened to the Bank of Japan's latest comments on policy on Friday.
The U.K.'s pound has roared higher as Mark Carney, the governor of the Bank of England, surprised markets.
Simon Derrick, chief currency strategist at BNY Mellon, says the cost of living crisis has been "the number one issue" for the U.K. economy and discusses the Bank of England's guidance.
Retail sales missed expectations, and state unemployment benefits claims climbed higher than expected.
The euro neared a four-month low versus the dollar and a 1-1/2 year trough against sterling on Wednesday.
Marvin Barth, head of foreign exchange research for Europe at Barclays, discusses the U.K. economy and the strength in sterling.
The dollar extended gains against the euro, amid expectations that the Federal Reserve could raise rates sooner than expected.
The euro weakened against the dollar, as yield differentials between Treasuries and Bunds widened to multi-year highs.
The euro rose against the dollar and the yen on Monday, on confidence that the ECB will not be easing policy again soon.