The U.S. dollar appreciated against its major counterparts in the European session on Monday, as investors focused on rising inflationary pressures after a spike in oil prices due to a global energy crisis.

West Texas Intermediate crude touched a 7-year high, crossing $85 a barrel.

Oil prices were underpinned by a shortage of natural gas and coal that fuels more demand for oil products in power generation.

Investors digested Federal Chairman Jerome Powell's comments on Friday, confirming that a tapering of stimulus will start soon, but will hold off on raising rates.

But the prospects of a tighter U.S. monetary policy in the near future supported the dollar, even though other major banks appeared to move faster than the Fed.

Markets await earnings results from tech companies as well as key risk events including central bank meetings in Canada, Japan and Europe for more direction.

The greenback climbed to a 4-day high of 0.9202 against the franc and a 1-week high of 1.1591 against the euro, off its early 1-1/2-month low of 0.9150 and a 4-day low of 1.1665, respectively. The next possible resistance for the greenback is seen around 0.94 against the franc and 1.13 against the euro.

The greenback edged up to 113.93 against the yen and 1.2389 against the loonie, following its prior lows of 113.42 and 1.2338, respectively. The greenback is seen finding resistance around 115.00 against the yen and 1.25 against the loonie.

The greenback recovered to 1.3742 against the pound, from a low of 1.3792 seen at 4 am ET. If the greenback rises further, 1.34 is possibly seen as its next resistance level.

The greenback came off from an early low of 0.7505 against the aussie, with the pair trading at 0.7475. The greenback is likely to find resistance around the 0.73 level.

The greenback rose to a 6-day high of 0.7130 against the kiwi, but it has since eased back to 0.7173. The pair had closed Friday's deals at 0.7150.

U.S. monthly budget statement for September will be featured in the New York session.

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