The US dollar continues to struggle to find demand amid improved market sentiment in the European session and expectations of a slower rate hike from the Federal Reserve (Fed).
The US NFP jobs report on Friday showed an increase of 223,000 jobs in December, but wage growth was smaller than expected.
There were also signs of a slowing economy in the US, with service industry activity contracting for the first time in more than 2 and a half years due to weak demand.
This made the dollar index continue to fall to the weakest level at 103.65 against a group of major currencies.
The euro and pound took advantage of this opportunity to bounce off monthly lows while also receiving support from news from China.
China reopened its borders on January 8 (Sunday), seeing tourists flock in and out of the country, marking the end of the zero-Covid-19 policy.
This opening has helped boost market sentiment and driven riskier currencies higher, particularly the Aussie and New Zealand dollars.
The European session saw the Australian dollar trade at a 5-month high, while the kiwi hit a 3-week high.
The market's focus now shifts to the US inflation data scheduled to be released on Thursday, where it will determine the market's next expectations for the Fed's policy decision.