12.03.201805:41:00UTC+00U.S. Dollar Slides As Faster Rate Hike Concerns Ease

The U.S. dollar slipped against its major opponents in the early European session on Monday, as last week's mixed jobs data that showed strong employment but slowing wage growth in February dented fears about a faster pace of rate hikes.

The U.S. economy created 313,000 new jobs in February, the biggest gain since mid-2016. However, the 12-month increase in worker pay declined to 2.6% from 2.8%, a sign that wages may not be keeping up with inflation.

The lackluster wage growth is likely prevent the Federal Reserve from raising interest rates four times in 2018.

Chicago Federal Reserve President Charles Evans told to CNBC on Friday that it is appropriate to "wait a little longer" than the upcoming meeting to lift interest rates this year.

"My own preference would be to wait a little bit longer," Evans said. "You could wait until midyear and still get a number of increases in."

Traders await U.S. CPI for February due tomorrow to gauge the outlook for Fed rate hike.

Inflation is expected to slow 0.2 percent on month, down from prior month's 0.5 percent gain.

Wednesday features the release of U.S. producer prices and retail sales for February.

The currency fell against its major rivals in the Asian session, with the exception of the pound.

The greenback slipped to 4-day lows of 0.9485 against the franc and 1.2341 against the euro, from last week's closing values of 0.9513 and 1.2303, respectively. On the downside, 0.93 and 1.25 are seen as the next possible support levels for the greenback.

The greenback that ended last week's deals at 1.3849 against the pound dropped to 1.3882. The greenback is poised to find support around the 1.40 level.

The greenback weakened to 2-week lows of 0.7880 against the aussie and 0.7323 against the kiwi, compared to Friday's closing quotes of 0.7846 and 0.7279, respectively. The next support levels for the greenback are likely seen around 0.81 against the aussie and 0.74 against the kiwi.

The greenback reached as low as 106.36 against the yen at 12:45 am ET and held steady therafter. The pair ended Friday's trading at 106.81.

Quarterly survey by the Ministry of Finance and the Cabinet Office showed that Japan's business survey index of large manufacturers weakened notably in the three months ended March.

The Business Survey Index, or BSI, dropped 2.9 in the three-month period to March from 9.7 in the previous three months.

On the flip side, the greenback that slipped to near a 2-week low of 1.2803 against the loonie rebounded slightly shortly afterwards. At last week's close, the pair was worth 1.2810.

Looking ahead, U.S. budget statement for February is set for release in the New York session.