The dollar fell on Thursday to its weakest against a basket of major currencies since the European Central Bank announced a program of quantitative easing in January, hit by growing concern that the U.S. economy has not just been suffering from a winter chill.
Stocks rose on Tuesday, with a potential trans-Atlantic corporate takeover boosting sentiment already buoyed by a growing conviction that the first rise in U.S. interest rates since 2006 won't come until after the summer.
Australia's central bank cut interest rates for the second time this year on Tuesday, seeking to buttress the economy against sliding mining investment while heading off a harmful increase in the local dollar.
The dollar rose for a second day on Monday, building on a modest comeback from a two-week decline on the back of data suggesting that the U.S. economy might be stabilizing following a recent soft patch.
The dollar hit a three-week low on Tuesday as investors eyed a U.S. Federal Reserve meeting starting later in the day that could offer clues as to whether bets on an interest rate hike in the coming months are justified.