Dollar fell in European trade against a basket of major rivals, plumbing three-month lows amid renewed selloff pressures due to prospects of a reduced Fed rate hike in December.
Fed members now believe a slower pace of policy tightening and rate hikes is appropriate, which bolstered the case for a 0.5% rate hike by the Fed at the next meeting.
The Index
The dollar index fell 0.7% to 105.32, the lowest since August, after closing up 0.2% on Friday, the first profit in four days.
The index lost 0.85% last week, the second weekly loss in three weeks on weak US data and after the release of Fed's minutes.
The Fed
Federal Reserve's November 1-2 meeting minutes showed most policymakers agreed to slow down the pace of rate pikes and policy tightening as inflation tapers off.
Now markets expect a 75% chance of a 0.50% rate hike by the Fed in December, and a 25% chance of a 0.75% chance.
Data
Markets await a batch of US data later this week to calibrate their expectations precisely, especially Fed Chair Jerome Powell's speech and the payrolls report for November.
Powell is speaking on the economy and inflation tomorrow, expected to include important clues for the path forward for policies.