USD rose against its major rivals in the European session on Monday, as demand for the U.S. currency increased amid worries that economic recovery might be slower than expected. The U.S. Dollar Index (DXY), measuring the U.S. currency's value relative to a basket of foreign currencies, increased 0.36% to 100.09.

The major European countries including Italy, Spain and France, continued to move toward a further easing of lockdown restrictions. The UK's prime minister Johnson laid out a three-phase coronavirus exit strategy, while Japan's economy minister Nishimura said that the state of emergency in many regions of the country could be lifted this week if new coronavirus cases are under control.

Meanwhile, the Robert Koch Institute (RKI) announced on Monday that Germany's coronavirus reproduction rate (or infection rate) jumped to 1.13, up from 1.1 the day before and 0.83 on Friday. The RKI noted that the increase made it necessary to watch the development very carefully in the next few days. However, the German health ministry said that the climb in coronavirus reproduction rate did not mean an uncontrolled outbreak. In addition, South Korea reported its largest single-day increase of COVID-19 infections in a month and warned of a second wave of the virus. This raised concerns that reopening activity might be embraced, making investors adjust their risk expectations.

The prospect of worsening relations between the U.S. and China continued to weigh on risk sentiment. The U.S. President Trump said on Friday he was "very torn" about whether to end the phase one trade deal with China, just hours after top trade officials from both countries pledged to "meet their obligations under the agreement in a timely manner" even despite coronavirus. On Monday, Beijing warned that it would take countermeasures in response to Washington's decision to tighten visa rules for Chinese journalists and urged Washington to immediately correct its mistakes.