Even if the European Central Bank holds rates on Thursday the euro's supremacy on the currency markets is close to an end, analysts said on Wednesday.
The ECB, with its mandate to look only at inflation when setting monetary policy, is "crazy" to leave the interest rate as high as its current 4.25 percent, Shane Oliver, head of investment strategy & chief economist at AMP Capital Investors, told CNBC Europe.
But although the high rate is hurting growth, it is unlikely to boost the euro further against the dollar, as the balance of power between the euro-zone and the U.S. has shifted.
"A lot of the U.S. bad news is out of the way. I think the feeling in Europe is that we're in for some bad numbers," Paul Bednarczyk, currency strategist at 4Cast, told CNBC.com.
The dollar's upward trend is likely to continue "barring any major shocks, any major banks collapsing or another credit crunch," Bednarczyk said.
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The Organization for Economic Co-operation and Development on Tuesday raised its annual forecast for U.S. growth to 1.8 percent from a 1.2 percent estimate in June, while it cut a previous prediction for the euro zone to 1.3 percent from 1.7 percent.
Further Dollar Strength
August was the best month in 15 years for the dollar, and analysts said the greenback will probably offer more pleasant surprises.
"I guess in the medium term (the dollar's firming) is going to be sustainable, and I assume that we will have further strength over the year," Hans Redeker, global head of foreign exchange strategy from BNP Paribas told CNBC.
"It seems to me that decoupling has taken place, but just on the other side of market expectations," Redeker added.