As said, Federal Reserve (Fed) Chairman Jerome Powell's speech at the annual Jackson Hole symposium has sparked volatility in the market.
The USD, in particular, has shown a fairly significant jump to a two-month high following Powell's slightly hawkish remarks.
Powell pointed out that the Federal Reserve may need to keep raising interest rates to lower inflation, which is still too high.
Although the statement is not as hawkish as he delivered a year ago in Jackson Hole, but investors see another increase in interest rates towards the end of the year.
As a result, the US dollar surged higher on Friday before paring back some of the gains to trade around 104.05 in the Asian session today.
Investors' focus next shifts to the release of key economic data this week, particularly the US NFP jobs report on Friday.
Looking at the movements of other major currencies, the euro and pound were flat at two-month lows, trading at around 1.0807 and 1.2560 against the greenback respectively.
European Central Bank (ECB) President Christine Lagarde's speech in Jackson Hole was overshadowed by Powell's statement, where Lagarde was seen as wanting to maintain the current policy stance.
Meanwhile, the Aussie and New Zealand dollars continued to hover around the same price with each trading at their weakest levels since November last year.
In addition, the Canadian dollar traded weakly at a three-month low against the greenback amid steady crude oil trading.
