"A significant delay to Europe's re-opening efforts will only widen the divergence between the economic outlook in Europe and the US," putting additional pressure on the euro, she said.
The Bank of Canada is seeing evidence of investor activity in some Canadian housing markets and is concerned that "fear of missing out" may also be driving price gains, Deputy Governor Toni Gravelle told Reuters on Tuesday.
"A key driver (for the Kiwi) is expected to be a continuation of the global recovery which should see commodity currencies outperform," Westpac analysts said in a note.
The dollar index stood at 91.866, having risen for the last three sessions, drawing support mainly from elevated US bond yields on the back of expectations of a strong economic recovery.
The euro weakened 0.2% to $1.1926 after rising last week for the first time in three weeks as latest data showed hedge funds slashed their net euro positions.
The dollar was little changed at 109.170 yen early in Tuesday's Asian session, after rising as high as 109.365 overnight. The BOJ begins a two-day policy meeting on Thursday, along with an extensive policy review.
Separately, China's central bank rolled over same amount of maturing medium-term loans earlier in the session while keeping the interest rate unchanged for an 11th straight month.
In Tokyo, e-commerce giant Rakuten skyrocketed 20.72 percent to a day-time upper limit of 1,503 yen and Japan Post gained 1.95 percent to 1,045.5 yen after the companies confirmed reports that the two firms agreed to form a capital alliance.