The buck's latest surge comes as rising Treasury yields attract funds, and so-called 'U.S. exceptionalism' - a strong economy containing many of the world's biggest and most successful companies - encourages global investors to buy American assets.

The tech-heavy Nasdaq Composite fell 1.58% while the S&P 500 lost 1.12%. The Dow Jones shed 333 points to end the day.

U.S. stocks gains narrowed on Monday afternoon, after Fed governor Lisa Cook warned that the stock market is susceptible to a "large decline." The Dow Jones Industrial Average edged up 19 points, or less than 0.

U.S. stock index futures edged higher on Monday, building on a late rally last week, as investors bought into technology stocks on continued optimism around AI and awaited crucial economic data that could set the tone for the U.