The U.S. dollar appreciated against its most major counterparts in the European session on Monday, as hot U.S. inflation data drove the treasury yields higher and raised expectations that the Federal Reserve will continue to tighten policy aggressively in the coming months.

Data from Labor Department showed on Friday that the U.S. consumer price index rose to a four-decade high of 8.6 percent in May, beating economists' expectations of 8.3 percent.

The data fuelled a selloff in stock markets as investors fear that aggressive monetary tightening could cause a recession.

The Fed meeting is also in focus, as investors expect a rate hike of 50 basis points amid soaring inflation.

Key U.S. economic data due this week include producer price index, retail sales, housing starts and industrial production.

The greenback reached as high as 0.9945 against the franc, its highest level since May 18. The greenback is likely to target resistance around the 1.02 region.

The greenback touched multi-week highs of 1.0445 against the euro and 1.2162 against the pound, coming off from its previous lows of 1.0520 and 1.2321, respectively. The next possible resistance for the greenback is seen around 1.00 against the euro and 1.19 against the pound.

Reversing from its early lows of 0.7044 against the aussie and 0.6350 against the kiwi, the greenback moved up to multi-week highs of 0.6957 and 0.6276, respectively. The greenback may find resistance around 0.68 against the aussie and 0.60 against the kiwi.

The greenback was up against the loonie, at nearly a 3-week high of 1.2868. If the greenback rises further, it may find resistance around the 1.30 level.

In contrast, the greenback pulled back to 133.83 against the yen, from more than a 20-year high of 135.20 seen in the Asian session. The greenback is seen finding support around the 128.00 mark.

US Dollar vs CAD (FX:USDCAD)
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US Dollar vs CAD (FX:USDCAD)
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