2023.10.3016:48:00UTC+00U.S. Dollar Weakens Ahead Of Fed Policy Review

The U.S. dollar declined against its major counterparts in the European session on Monday, as investors awaited the Federal Reserve's policy meeting for clues on the outlook for interest rates.

The Fed meeting will begin on Tuesday, with an announcement due Wednesday.

With the Fed widely expected to leave interest rates unchanged, traders will pay close attention to the accompanying statement for clues about the potential for further rate hikes.

All eyes are on key economic releases, including the non-farm payrolls report due on Friday.

Economists expect a job growth of 180,000 in October, down from an increase of 336,000 jobs in the previous month. The unemployment rate is expected to remain steady at 3.8 percent.

The greenback fell to 1.3813 against the loonie and 0.5843 against the kiwi, off its early highs of 1.3873 and 0.5804, respectively. The greenback is poised to challenge support around 1.33 against the loonie and 0.62 against the kiwi.

The greenback depreciated to a 6-day low of 1.0625 against the euro, near 2-week low of 148.80 against the yen and a 5-day low of 0.6383 against the aussie, from its early highs of 1.0547, 149.85 and 0.6332, respectively. The next possible support for the currency is seen around 1.08 against the euro, 148.00 against the yen and 0.68 against the aussie.

The greenback eased to 0.9007 against the franc, from an early nearly 3-week high of 0.9048. If the currency slides again, it may find support around the 0.89 area.

The greenback touched a 5-day low of 1.2164 against the pound, reversing from an early 4-day high of 1.2089. The greenback is seen finding support around the 1.24 level.