As long as the greenback is strong, the renminbi can't afford to be weak, notes Liu Li Gang from Citi.
The yen soared against the dollar after a round of modest monetary policy easing from the Bank of Japan disappointed investors.
The dollar fell against the yen as expectations faded of the Bank of Japan delivering a radical stimulus package this week.
The U.S. dollar gained against the euro and the yen after the Federal Reserve left the federal funds rates unchanged on Wednesday.
The yen hit a high against the euro and rose against the dollar as traders lower expectations of a Japanese stimulus injection.
The pound is expected to push even lower, according to currency analysts, as the first signs emerged of the impact it's giving to the business sector.
The dollar inched up against the yen ahead of meetings at the Bank of Japan and the Fed which investors expect to be dollar-positive.
Citi's Mohammed Apabhai explains that dollar strength will lead to a continued devaluation of the yuan, which then will put pressure on bond markets.
Saxo Bank's Steen Jakobsen says China's advantage is that its productivity levels can be improved through market liberalization reforms.
The dollar index also hit its highest level since March.
China's Vice Finance Minister Zhu Guangyao tells CNBC that there's no reason to devalue the country's currency as economic fundamentals remain solid.
The softness in Asian markets is because of profit taking after a strong bull run in the past week, says Ample Capital's ALex Wong.
The dollar fell after a six-week high against the yen, while the Euro showed little change after ECB keeps policy unchanged.
Speculation of more aggressive fiscal and monetary policy easing has weakened the yen and supported the Asian stock rally, says Commonwealth Bank's Elias Haddad.
HSBC's Steven Sun explains that his bullishness on H-shares is in part due to increased inflows from the poorly performing China markets.
Asian markets will likely take a breather because Asia's economies are not showing a strong recovery, says Mirae Asset Global Investments' Rahul Chadha.
The dollar hit a four-month high against a basket of currencies, bolstered by strong U.S. data and expectations of Fed rate rises.
The dollar rose against a basket of major currencies after U.S. housing starts rose by more than expected in June.
The Yen slips broadly as Turkey quells an attempted military coup, while calm in UK prompts sterling bump.
The British pound could be showing signs of a false dawn, according to currency analysts, who suggest that a recent rally could soon give way to more bouts of heavy selling.