The U.S. dollar was lower against its most major counterparts in the Asian session on Monday, on hopes that the Federal Reserve will reduce the pace of rate increases at the February meeting.

Fed Governor Christopher Waller said on Friday that he supported a quarter percentage point rate hike at the next meeting as inflation and wages continued to moderate.

"Based on the data in hand at this moment, there appears to be little turbulence ahead, so I currently favor a 25-basis point increase at the (Federal Open Market Committee's) next meeting," Waller said.

The benchmark yield on the 10-year treasury note fell to 3.475 percent.

Investors await U.S. GDP data and the PCE index due later this week for more clues on interest rate outlook.

The greenback weakened to more than a 9-month low of 1.0927 against the euro and more than a 7-month low of 1.2448 against the pound, off its early highs of 1.0859 and 1.2393, respectively. The greenback is likely to challenge support around 1.12 against the euro and 1.27 against the pound.

The greenback depreciated to 5-day lows of 0.6995 against the aussie, 0.6499 against the kiwi, 1.3355 against the loonie, reversing from its early highs of 0.6960, 0.6462 and 1.3387, respectively. The greenback is seen facing support around 0.72 against the aussie, 0.66 against the kiwi and 1.29 against the loonie.

The greenback was down against the franc, at 0.9167. Next key support for the greenback is likely seen around the 0.90 level.

In contrast, the greenback rebounded against the yen, with the pair trading at 130.31. The currency is poised to find resistance around the 134.00 level.

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