The dollar rose in early December due to interest rates and political uncertainty. However, a downwind is blowing across almost all markets. The Indian rupee is on the verge of reaching an all-time low; the Australian and New Zealand dollars are starting the month on a negative note; the Chinese yuan is falling to its lowest level in 4 months

The dollar rose on Monday in what promises to be a crucial week for the outlook for lower rates in the United States, while the recent rebound in the yen was supported by bets on a rise in rates in the United States.

Political uncertainty in France added to the pressure on the euro, which slid 0.4% to $1.0532, after rebounding by 1.5% last week and moving away from a one-year low of $1.0425.

This saw the dollar index rise to 106,170, after ending November with a gain of 1.8% even after a setback last week.

The yen climbs to 150 to the dollar due to growing bets on a rate hike from the BOJ. The dollar regained 0.4 percent on the yen to 150.37, after losing 3.3 percent last week, its worst performance

Adding to the pressure, the onshore Chinese yuan hit its lowest level in four months on Monday and crossed a key level of 7.26 to the dollar as US President-elect Donald Trump warned US President-elect Donald Trump warned BRICS member countries against replacing the dollar or face 100% tariffs.

As a result, Aussie — which is often sold as a liquid substitute for the Chinese yuan given China's status as Australia's biggest trading partner — fell by 0.3% to $0.6499.

Kiwi fell 0.5% to $0.5893, after losing 0.9% last month to a one-year low of $0.5979. The resistance is located at a key graphical level of $0.5935

The Indian rupee is expected to weaken beyond 84.50 per US dollar to reach an all-time low. The one-month undeliverable futures contract indicated that the rupee would open at 84.58-84.60, up from its close of 84.4825 in the previous session and below its all-time low of 84.5075 two weeks ago. Asian currencies were down, with the offshore yuan sliding below 7.27 per dollar

The onshore yuan fell to a low of 7.2675 to the dollar, its lowest level since July 24, despite a survey of the private manufacturing sector released on Monday, showing that Chinese factory activity grew at the fastest pace in five months in November. The Chinese yuan is strengthening as the dollar continues to weaken due to trade war fears

The yuan spot opened at 7.2450 per dollar and was trading 170 pips lower than the previous session's close at 7.265 at 03:27 GMT and 1.09% lower than the midpoint.