In Canada, it seems Prime Minister Justin Trudeau might be gearing up to announce his intention to step down, although he hasn't made a final call yet, according to a source who spoke to Reuters. The Globe and Mail had earlier mentioned that Trudeau could reveal his resignation as soon as Monday.
Markets seem to have already factored this in and might actually welcome an election to clear things up, which has led to the U.S. dollar falling 0.36% against the Canadian dollar, now sitting at C$1.4395.
Another point of interest is the Chinese yuan, which weakened past the significant level of 7.3 per dollar in the onshore market for the first time in 14 months on Friday, after the People's Bank of China (PBOC) had been actively defending that level throughout December.
The onshore yuan hit a 16-month low of 7.3289 per dollar, while the offshore yuan saw a slight increase of 0.06% to 7.3558.
"The PBOC looks to have stopped defending that 7.30 level," said Ray Attrill, head of FX strategy at National Australia Bank (NAB).
"That just draws a lot more attention to what the PBOC does from a fixing perspective today and in the coming days, as to whether effectively they're now allowing dollar/CNY to trade up into a higher trading range or not, because I do think that will have implications for broader Asia currencies, but also for the Aussie and kiwi."
Before the market opened on Monday, the PBOC set the midpoint rate for the yuan, which can trade within a 2% range, at 7.1876 per dollar.
The Australian and New Zealand dollars, often seen as liquid alternatives to the yuan, weren't really impacted by the yuan's drop on Friday, as both currencies gained about 0.2% during the Asian trading session.
The Aussie was last at $0.6227, while the kiwi climbed 0.22% to $0.56245.
TRUMP AND RATES
In the wider market, investors were focused on Friday's important U.S. jobs report for insights into the health of the largest economy in the world.
Several Fed officials are set to speak this week, likely echoing recent statements from their peers that the battle against inflation is still ongoing.
The dollar has been gaining strength due to expectations of fewer interest rate cuts from the Fed this year, with its rise to a two-year high last week pushing the euro down to its lowest point in over two years.
The euro was last stable at $1.0310, while the dollar index dipped slightly to 108.89.
Sterling increased by 0.13% to $1.2440, and the yen dropped 0.24% to 157.66 per dollar.
Adding to the dollar's safe-haven appeal was the uncertainty surrounding U.S. President-elect Donald Trump's plans for significant import tariffs, tax cuts, and immigration restrictions set to take effect on January 20.
"There's still a massive amount of uncertainty as to the speed with which we'll see policy announcements and how much the reality will match up to the rhetoric, so I think that leaves huge amounts of uncertainty in markets," said NAB's Attrill.
"It's just really hard to see the U.S. dollar coming to any harm... at the moment, you've got to be pretty brave to be betting against the continuation of dollar strength."