Major world currencies remained stable on Monday as traders braced themselves for further losses in the US dollar following the Federal Reserve's dovish comments late last week.

As hopes that the Fed might stop hiking rates gained traction, global stocks saw their best week in a year as well.

The dollar is also weakened by other factors, including deteriorating U.S. employment data, weaker global manufacturing data, and a drop in longer-term Treasury yields.

Futures markets turned, signaling a 90% probability that the Fed had finished raising rates and an 86% probability that the first policy easing would occur as soon as June.

The dollar index that gauges the greenback versus its major pairs dropped 0.08% to 104.99. The index retreated above 1%, its largest slip since mid-July that touched the lowest level in 6 months.

EUR/USD climbed by 0.08% to $1.0738.

GBP/USD traded flat at $1.2373. British GDP figures for Q4 is scheduled to release this week.

USD/JPY dipped 0.1% to trade at 149.48 per dollar.