The U.S. dollar declined against most major currencies during Mondays trading, with pressure mounting on the greenback as markets remain firmly priced for a Federal Reserve rate cut at its upcoming meeting this month.

This comes ahead of key U.S. inflation data due later this week, which the Fed is expected to weigh before initiating its easing cycle.

Data released Friday by the U.S. Department of Labor showed that the economy added only 22,000 jobs in August, compared to expectations of 75,000, marking a highly disappointing report.

The figures also revealed that the U.S. unemployment rate rose to 4.3% in August, in line with analysts forecasts.

Following these numbers, bets on a Fed rate cut at this months meeting increased, with the CME FedWatch tool showing a 98% probability of a 25-basis-point reduction.

By 20:07 GMT, the U.S. dollar index fell 0.3% to 97.4, after touching a high of 97.9 and a low of 97.4.

Australian Dollar

The Australian dollar rose 0.6% against its U.S. counterpart to 0.6594 by 20:24 GMT.

Canadian Dollar

The Canadian dollar also gained 0.1% against the U.S. dollar to 0.7241 by 20:24 GMT.