As traders watched new economic data in the coming week to predict the future course of policy rates, the U.S. dollar kicked off the final week of November weaker than it had been all year and was headed for its largest monthly decline in a year.

After the holiday break late last week, traders resumed observing a peak in US interest rates and focused on when the first-rate reduction might occur. This week's release of US core PCE prices is expected to provide additional hints regarding the Fed's potential course of action.

The CME FedWatch tool indicates that market pricing indicates a roughly 25% likelihood that the Fed may start relaxing monetary policy as early as March.

The dollar index that gauges the greenback versus its major pairs plunged by 0.2% to 103.21 and was poised for a monthly loss over 3%, its poorest year performance.

EUR/USD advanced by 0.2% to $1.0954.

GBP/USD added $1.2644, maintaining its gains from the previous week as a result of figures indicating that, after three months of decline, British companies surprisingly recorded a modest return to growth in November.

USD/JPY slumped 0.4% to 148.885 yen.