The strengthening of the US dollar continued into the European session although the gains recorded have stalled after the giant currency hit its latest 20-year high.
At the time of writing, the dollar index, which measures the greenback's strength, was trading steady at 109.23 against major currencies.
Federal Reserve (Fed) Chairman Jerome Powell insisted that he would continue to raise interest rates and leave them high for some time to ensure inflation falls to the central bank's 2% target.
Just like the Fed, the European Central Bank (ECB) was also not behind in offering hawkish hints of a bigger rate hike at its September policy meeting.
However, due to the stronger US dollar, the euro currency failed to take advantage of the ECB's statement to record gains and instead remained weak below parity against the USD.
The pound continued to sink to a new low since March 2020, leaving it trading weak on Monday amid the UK's public holiday market closure.
Also suffering the same fate were commodity currency trading, the Aussie and New Zealand dollars which plunged to a one-month low against the greenback.
Meanwhile, the Canadian dollar traded lower even though oil prices maintained their strength amid a sea of red in the market.
