USD  fell against its major rivals in the European session on Monday as hopes for a coronavirus treatment breakthrough bolstered risk appetite, while market participants waited for the Fed’s annual Jackson Hole Symposium. The U.S. Dollar Index (DXY), measuring the U.S. currency's value relative to a basket of foreign currencies, dropped 0.39% to 92.88.

The U.S. Food and Drug Administration (FDA) issued an "emergency use authorization" for convalescent plasma as a treatment of Covid-19 in hospitalized patients. According to the FDA, early evidence indicated that the antibody-rich plasma "may be effective" in treating Covid-19. “This is a powerful therapy,” the U.S. President Donald Trump stated on Sunday at a White House news conference. “Today’s action will dramatically expand access to this treatment.” The Financial Times reported that the Trump administration is considering "fast-tracking" the Covid-19 vaccine candidate being developed by AstraZeneca and Oxford University.

Investors also looked ahead to the U.S. Federal Reserve's annual Jackson Hole meeting later in the week, where its Chair Jerome Powell will discuss the U.S. monetary policy.