The US dollar started trading slowly at the opening of the week after suffering a depreciation in the closing sessions of last week.
A surge in US producer inflation data published on Thursday supported the strengthening of the US dollar, but the currency weakened again on Friday on less encouraging US retail sales data and consumer confidence survey.
Investors are still evaluating the latest economic data published for a picture of the direction the central bank will choose in setting monetary policy further.
The Federal Reserve (Fed) is expected to start cutting interest rates at its September meeting, with volatile market speculation continuing to influence the US dollar's trading performance.
In addition to the data, investors will also be watching several key events taking place this week.
At the beginning of the week, the meeting between US President Donald Trump and Ukrainian President Volodymyr Zelenskiy will be in the spotlight, which will also be attended by other European leaders.
Trump is also expected to press Zelenskiy to end the war as soon as possible after he met with Russian President Vladimir Putin over the weekend in Alaska.
In addition, the weekend will see the Jackson Hole symposium, which will bring together financial experts from around the world.
Fed Chairman Jerome Powell's speech on the economic outlook and the central bank's policy framework will be scrutinized.
