On Monday, traders re-evaluated the chances of another rate hike by the Federal Reserve later this month given the continued U.S. financial crisis, which caused the U.S. dollar to decline.

The dollar index which gauges the US dollar versus its major pairs, edged down by 0.6% at 103.528, gearing towards the lowest level in one month.

While having previously projected a 25-basis-point increase, the impactful investment firm Goldman Sachs stated on Sunday that they no longer anticipate the U.S. central bank to raise rates at its meeting on March 22.

EUR/USD surged by 0.8% to 1.0730, keeping close to a one-month high as the euro took advantage of the decline in the value of the dollar.

GBP/USD ticked up by 0.6% to 1.2105 as HSBC and the Bank of England have agreed to buy Silicon Valley Bank's U.K. businesses, which has helped to ensure that the collapse of the American lender late last week won't have any knock-on effects.

USD/JPY slumped by 0.2% to 134.60, close to the highest level in one month.