The volatility in currency markets comes almost two years after talk of unwinding U.S. monetary stimulus sent global markets reeling, with some emerging market currencies bearing the brunt of the sell-off.
"Markets continue to price in the assumption that next week's Federal Reserve meeting could see a re-phrasing of its statement," said Jeremy Stretch, head of currency strategy at CIBC in London.
"Comments from some Fed officials also suggest were are getting closer to a rate hike, while there are a myriad reasons to be short other currencies against the dollar."
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In Turkey, for instance, political pressure on the central bank to take action to boost growth has fueled fears about the bank's independence, undermining the lira. Turkey's currency has shed more than 10 percent of its value against the dollar so far this year.
"Emerging market (EM) currencies are off across the board, as markets focus back on those stronger U.S. numbers from last week, prospects for early Fed tightening, and underlying problems in EM," Timothy Ash, head of EM (ex-Africa) research at Standard Bank, wrote in a note.
"In this environment countries don't need to give investors any excuse to sell - especially still higher rolling credits like Turkey."