The dollar index is the weakest in 7 months
Fed policymakers' statements supported market expectations
Jerome Powell's speech became the focus
The Asian session saw the currency giant USD remain trading weaker as continued rising market sentiment helped strengthen riskier currencies.
Against most major currencies, the dollar index which measures the strength of the greenback traded dismally at a 7-month low of 103.12.
Investors assessed the United States' economic data released last Friday as suggesting that the Federal Reserve (Fed) may slow its rate of tightening.
This was supported by a statement from the central bank's policymaker, San Francisco Fed President Mary Daly, who said a 50 basis point or 25 basis point hike was under consideration for the next meeting.
Meanwhile, market sentiment continues to be supported by the reopening of China which boosts hopes for a stronger recovery from the world's second giant economy.
Risk-sensitive currencies, the strong Australian dollar stood at its strongest level in nearly 5 months, while the New Zealand dollar strengthened to a 3-week high against the USD.
In Europe, the euro continued to capitalize on widespread weakness to trade stronger at a 7-month high against the greenback, while the pound rose to a 3-week high.
Overall, major currency trading remained firm against the greenback, but price movements were seen to be slower.
This may also be influenced by investors' vigilance ahead of Fed Chairman Jerome Powell's speech at the upcoming New York session which will certainly shake the market.
