Entering the European session, the US dollar began to set pace to climb higher against its main rival.
Earlier in the Asian session, investors were treated to disappointing readings in China's manufacturing and services PMI data which each showed contraction in October.
This has triggered risks in market sentiment that favor the US dollar to rise and limit the movement of most major currencies.
Also supporting greenback dollar trading is the expectation of a 75 basis point interest rate hike by the Federal Reserve (Fed) at its policy meeting this week.
Prior to this, investors will first witness the policy decision of the Reserve Bank of Australia (RBA) which is expected to increase rates by 25 basis points.
With this expectation, the Aussie dollar traded gloomy on Monday's trading session in addition to being affected by the risk-on market sentiment.
Meanwhile, the yen remained trading lower after the Bank of Japan (BOJ) maintained its dovish stance for ultra-loose policy.
Following the development of European currencies, the pound and the euro each fell around 0.4% against the greenback with investors also looking forward to the Bank of England (BOE) policy meeting.
