The greenback plunged further on Monday, moving close to the lowest level in five months amid worries as the lack of clarity regarding the Trump administration's tariff decisions are likely to trigger an economic slowdown.

The dollar index that gauges the greenback versus its major pairs dropped 0.2% lower to 103.162, not far from the lowest level hit in 5 months.

The U.S. dollar has dropped nearly 5% this year due to worries about the impact of Trump’s extensive tariffs, with data released on Friday revealing that consumer sentiment sank to its lowest point in almost two and a half years in March.

U.S. retail sales data, set to be released later on Monday, will provide the next clue about the state of the world’s largest economy, just before the Federal Reserve's interest rate decision on Wednesday.

EUR/USD advanced by 0.2% at 1.0907, It is near last week’s peak, the highest since October 11, as the German parliament is expected to vote on approving a significant infrastructure fund and major changes to borrowing regulations.

GBP/USD ticked up by 0.3% to 1.2970, Driven by a weakened dollar, ahead of the Bank of England's policy meeting on Thursday.

The Bank of England is generally anticipated to maintain current interest rates following a slight rise in inflation last month.

USD/JPY slid by 0.1% to 148.47, Despite increasing inflationary pressures, the BOJ is expected to keep the interest rate at 0.5% this week, as officials are concerned about escalating trade tensions resulting from U.S. President Donald Trump’s tariffs.