USD traded lower against EUR, GBP and the safe-haven JPY and CHF in the European session on Monday, as investors' flight to safe-haven assets, triggered by coronavirus fears, pushed the U.S. 10-year Treasury yields to a record low of 0.32 in overnight trading. The dollar index dropped 0.9% to 95.06, its lowest level since September 2018.

The U.S. Federal Reserve made an emergency rate cut of half a percentage point last week in between its policy meetings, the first such unscheduled cut since the financial crisis. According to the CME FedWatch tool, the money market has already priced in more aggressive easing - a 75 basis point cut - at the Fed’s meeting on March 18.

Meanwhile, commodity-linked currencies, such as AUD, NZD and CAD, saw heightened pressure, as oil prices tumbled more than 22% after Saudi Arabia pledged to slash oil prices and increase output following the collapse of oil supply cut pact with Russia.