The rise of the US dollar once again graced the trade early in the week after receiving support from the risk sentiment regarding Covid-19 in China and the hawkish statement of the Federal Reserve (Fed) policy makers.
Against most major currencies, the dollar index, which measures the greenback's strength, traded higher at 106.70 during the Asian session.
The currency king initially made only modest gains in early trading, jumping higher in the New York session (Monday) after Fed policymakers James Bullard and John Williams.
St Louis Fed President James Bullard said that the central bank should continue raising rates until 2023, bringing their funds rate to a target range of 5%-7%.
Meanwhile, New York Fed President John Williams said inflation is still high and it will take time to come down, stressing that the central bank needs to do more in reducing price pressure.
Meanwhile, safe-haven trading got a boost on Monday amid rising tensions in China.
Chinese anger erupted over the weekend, with hundreds of protesters protesting in Shanghai amid growing discontent over the endless string of Covid-19 restrictions.
Risk-sensitive currencies, the Australian and New Zealand dollars fell sharply following the uncertainty surrounding China.
The Aussie dollar was also hit by Australia's first fall in retail sales for the year in October, signaling high interest rate hikes are finally having an effect on spending.
In the meantime, the euro showed unusual movement by surging higher in the European session following the European Central Bank's (ECB) hawkish stance to extend interest rate hikes.
However, when entering the New York session, the currency again erased the gains due to stronger US dollar trading.
