The U.S. dollar weakened against its major counterparts in the European session on Monday on bets that the Federal Reserve is done hiking interest rates.

The dollar index slipped as investors looked ahead to key inflation data from the United States and Europe due this week for direction.

After the November FOMC minutes revealed a cautious approach to future rate hikes, traders now await U.S. reports on new home sales, consumer confidence, pending home sales and manufacturing activity this week for additional clues about the outlook for growth and interest rates.

The Commerce Department's report on personal income and spending may be in the spotlight, as it includes readings on inflation said to be preferred by the Federal Reserve.

The Fed's favored measure of inflation is expected to slow to its lowest since mid-2021, reinforcing investor optimism that the Fed is done hiking interest rates.

The U.S. GDP second estimate for the third quarter is set to be released on Wednesday.

The Beige Book, a compilation of anecdotal evidence on economic conditions in each of the twelve Fed districts, along with remarks by several Federal Reserve officials, including Chair Jerome Powell's speech on Friday, could impact the asset markets.

The greenback touched 0.6097 against the kiwi and 0.6607 against the aussie, setting 3-1/2-month lows. The greenback is seen finding support around 0.63 against the kiwi and 0.69 against the aussie.

The greenback fell to a 5-day low of 148.77 against the yen and a 6-day low of 1.0959 against the euro, off its early highs of 149.67 and 1.0926, respectively. The greenback is poised to challenge support around 144.00 against the yen and 1.12 against the euro.

The greenback dropped to a 2-1/2-month low of 1.2626 against the pound and near a 3-month low of 0.8795 against the franc, reversing from its previous highs of 1.2590 and 0.8828, respectively. The currency is likely to locate support around 1.31 against the pound and 0.86 against the franc.

Against the loonie, the greenback was down at 1.3622. The greenback may locate support around the 1.34 mark.

Looking ahead, U.S. building permits and new home sales for October are due in the New York session.

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