The greenback steadied on Monday, inching up close to its lowest level in 7 months as projections grew that Fed may take an eased approach in raising its interest rate hikes post taking a hawkish stance.

The US dollar index which gauges the dollar versus its major pairs, railed at 101.98, which crept up over levels hit in 7 months.

The US dollar slipped beyond 1% since the beginning of 2023, where inflation demonstrated a slowdown based on the released figures for December, which considered to be the first decline in 30 months. This raise expectations that the consecutive aggressive rate hikes may terminate soon.

EUR/USD stabilized at 1.0827 post touching a new peak in 9 months at 1.0874.

GBP/USD dipped at 1.2224, moving away from its highest level in 1 month.

USD/JPY advanced by  0.1% at128.00, a bit over its trough in 7 months, where investors are gearing their attentions this week towards BOJ's policy.

Projections of more policy tweaks from Bank of Japan's side are rising, post dropping its unpredicted bombshell earlier last December.