The euro dominated headlines in the first quarter of 2015, but the Japanese yen and Australian dollar will be in focus later this year, analysts say, as both are likely to buckle when the Federal Reserve raises interest rates.
"The theme this year will continue to be U.S. dollar strength against the major G-10 currencies, including the Japanese yen, as well as the Australian and New Zealand dollars," ANZ senior FX strategist Sam Tuck told CNBC by phone. The U.S. dollar's dominance is so solid "the key risk event this year is the timing of the U.S. Federal Reserve raises interest rates."
The U.S. dollar index has risen 8.7 percent year to date and 22.6 percent over the past 12 months.
Of the G-10 currencies, the euro fell hardest against the U.S. dollar in the first quarter, sliding 10.7 percent on the back of the European Central Bank's quantitative easing program.
In the Asia Pacific region, the Australian and New Zealand dollars also fell, albeit by a more modest 6.9 percent and 4.5 percent, respectively, against the greenback. The Japanese yen was able to resist the U.S. dollar's rise, however. It remained stable after dropping 6.3 percent in the last two months of 2014.
Investors tip an imminent Fed rate hike as the likely catalyst for further dollar gains, though the timing remains uncertain.
"The U.S. dollar will peak when the Fed raises rates, probably after the Federal Open Market Committee meeting in June," Macquarie FX strategist David Forrester told CNBC by phone.
Catalyst for yen weakness
Asian central banks will also play an important role in how their currencies fare, analysts say.
For the yen, speculation that the Bank of Japan (BOJ) will ease monetary policy again is likely to trigger a renewed sell off. The Japanese currency has weakened around 29.2 percent against the dollar since April 2013 on the bank of the central bank's massive quantitative easing effort.