The U.S. dollar weakened against other major currencies in the Asian session on Monday amid optimism that the U.S. Federal Reserve may cut interest rates by a full percentage point by the end of 2024.

The soft U.S. labor market and inflation readings from last week, boosted the traders' sentiments to bet on Fed's rate hike pause. Some traders bet that the central bank could begin rate cut by March 2024.

In the Middle East, the Israeli ambassador to the U.S. said he is hopeful a deal for the release of a significant number of hostages will be reached in the coming days.

In the Asian trading now, the U.S. dollar fell to nearly a 3-month low of 1.0936 against the euro and a 5-day low of 1.2496 against the pound, from Friday's closing quotes of 1.0907 and 1.2461, respectively. If the greenback extends its downtrend, it may find support around 1.10 against the euro and 1.28 against the pound.

Against the Swiss franc and the yen, the greenback dropped to more than a 2-1/2-month low of 0.8831 and nearly a 1-1/2-month low of 148.69 from last week's closing quotes of 0.8855 and 149.62, respectively. The greenback may test support near 0.86 against the franc and 146.00 against the yen.

The greenback slipped to a 4-day low of 1.3690 against the Canadian dollar, from Friday's closing value of 1.3718. On the downside, 1.34 is seen as the next support level for the greenback.

Looking ahead, German PPI for October is slated for release at 2:00 am ET in the pre-European session.

In the European session, Eurozone construction output for September is set to be published.

In the New York session, U.S. CB leading index for October is slated for release.

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