The U.S. dollar strengthened against the other major currencies in the early European session on Monday, extending its gains from last Friday after Federal Reserve Chair Janet Yellen and Fed Vice Chair Stanley Fischer signaled the world's largest economy looks healthy enough to take on another increase in interest rates as soon as September.

The Federal Open Market Committee "continues to anticipate that gradual increases in the federal funds rate will be appropriate over time to achieve and sustain employment and inflation near our statutory objectives," Yellen said in a symposium at Jackson Hole, Wyoming.

Comments from Fischer that an interest-rate increase is possible in September and it's possible the FOMC could raise interest rates twice this year also made investors jittery.

The U.S. jobs report for August will be released this week, with investors waiting to see if the data confirms the recent Fed rhetoric of a strong economy.

Market participants also await the results of global manufacturing surveys and the outcome of the upcoming Group of 20 Summit in Hangzhou, China, for further direction.

Meanwhile, the European stock markets are lower in the wake of hawkish comments from Federal Reserve officials.

In Asian trading, the U.S. dollar held steady against its major rivals.

In the European trading, the U.S. dollar rose to a 2-week high of 1.1172 against the euro and a 1-week high of 1.3088 against the pound, from early lows of 1.1208 and 1.3138, respectively. If the greenback extends its uptrend, it is likely to find resistance around 1.09 against the euro and 1.27 against the pound.

Against the yen and the Swiss franc, the greenback advanced to near 3-week highs of 102.39 and 0.9794 from early lows of 101.83 and 0.9765, respectively. The greenback may test resistance around 107.00 against the yen and 1.00 against the franc.

Looking ahead, U.S. personal income and spending data for July is due to be released in the New York session.

The U.K. markets are closed in observance of the Summer Bank holiday.

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