Dollar recouped some of its previous week's losses amid China's protests and hawkish Fed comments

The dollar is holding gains from the previous session on Monday. Market sentiment has been dampened by mass demonstrations in China that have grown against the coronavirus restrictions. The move in the dollar was also fuelled by hawkish comments from Federal Reserve officials.

Investors were turning to the safe-haven currency as protests in China against the zero-tolerance strategy towards COVID-19 erupted.

Carol Kong, a currency strategist at the Commonwealth Bank of Australia (CBA), suggested how the dollar will move. According to her, the views on China's COVID-19 policy as well as investors' willingness to take risks will have an impact on the dollar.

Remarks from St. Louis Fed President James Bullard and New York Fed President John Williams on the need for Fed policy tightening also supported the dollar’s ascent. 

Ray Attrill, head of FX strategy at National Australia Bank, said that some Fed officials had sounded hawkish over the past 24 hours. This rhetoric goes against market prices.

Market participants will be closely watching for Fed Chairman Jerome Powell's remarks on Wednesday. In addition to this, key U.S. employment data for November is expected to be released on Friday.