The dollar held on to gains, having rallied to an eight-year high against the yen after a batch of upbeat data bolstered the case for a Fed rate hike.» Read More
Switzerland's franc soared by almost 30 percent after the Swiss National Bank abandoned its cap against the euro.
The dollar fell against the yen following after newly released data showed retail sales fell 0.9 percent, its biggest drop since January 2014.
Sterling fell towards an 18-month low against the dollar, after data showed British inflation at its lowest since 2000.
The yen hit a one-month high against the dollar on Tuesday, buoyed by steady demand for safe-haven assets against a backdrop of plunging oil prices.
Last week, Fitch Ratings downgraded Russia's credit rating to 'BBB-'. Paul Rawkins, head of emerging Europe sovereign ratings at Fitch, explains that recent events such as the rapid decline in the oil price and the volatility of the Russian ruble contributed to the downgrade.
Sterling recovered some ground on Friday, pushing back above $1.51 as the dollar retreated broadly.
Falling oil prices and deflation are weighing on Norway and Sweden respectively, while Finland has been hit by the recession in Russia.
The euro extended losses into a sixth straight day to trade near a nine-year low, as investors bet the ECB was getting closer to adopting QE.
The euro hit another nine-year low against the dollar on Wednesday, after data for the euro zone revealed that prices were falling in the region.
The U.K. pound hit a fresh 17-month low against the U.S. dollar on Tuesday and currency experts are split on which way the currency will head next.
The safe-haven yen rose as investor risk aversion mounted following a sharp drop in crude oil and stocks.
The euro fell to near a nine-year low, hit by concerns that Greek elections will result in a government that will aim to cancel austerity measures.
With Russia being a risky country to invest in, Martina Bozadzhieva, head of research for EMEA at Frontier Strategy Group discusses the strategy she gives to her clients.
Lifting sanctions imposed on Russia as soon as this month or the next would be "premature" but they will eventually be lifted, says Martina Bozadzhieva, head of research for EMEA at Frontier Strategy Group.
Discussing the outlook for Russia, Benoit Anne, head of EM strategy at Societe Generale, says that things for Russia could well get worse, and a sovereign rating downgrade may be the next "bombshell."
The euro fell to its lowest in 4-1/2 years against the dollar on Friday after the head of the ECB fanned expectations of QE later this month.
The U.S. dollar hit its highest level since March 2006 on Friday, as the euro fell on speculation about imminent monetary easing tactics.
The factors behind the decline in the Russian ruble - including sanctions and low oil prices - are likely to stay put for now, says Carlo Gallo, founder & director at Enquirisk.
The dollar was set to end 2014 with a gain of more than 12 percent against a basket of major currencies on Wednesday.
The yen gained sharply against both the dollar and euro on Tuesday as investors sought the traditional safety of the Japanese currency.