Since _ at the beginning of a variable name is often used to indicate a private variable (or at least one intended to remain private), I find $ convenient for adding in front of my own brief aliases to generic code libraries.
For example, when using jQuery, I prefer to use the variable $J (instead of just $) and use $P when using php.js, etc.
The prefix makes it visually distinct from other variables such as my own static variables, cluing me into the fact that the code is part of some library or other, and is less likely to conflict or confuse others once they know the convention.
It also doesn't clutter the code (or require extra typing) as does a fully specified name repeated for each library call.
I like to think of it as being similar to what modifier keys do for expanding the possibilities of single keys.
But this is just my own convention.
