Golden Finance reported that the U.S. dollar fell during Monday's Asian trading session as traders increasingly preferred to bet on a 50 basis point rate cut by the Federal Reserve this week. The decline in the U.S. dollar boosted major currencies such as the yen, which rose to its highest level since July 2023. After weeks of debate over whether the Federal Reserve will start its easing policy with a 25 basis point or 50 basis point rate cut, traders are leaning towards the latter option. Futures prices tied to the Fed's decision to cut interest rates this week show a probability of about 58% for a 50 basis point cut, compared with a 50-50 forecast late last Friday. "We believe that the Fed is about to usher in a new round of easing cycle, which is a major negative factor for the U.S. dollar," said Rodrigo Catril, a strategist at National Australia Bank. "As the Fed eases monetary policy next year and cuts the funds rate to neutral or even below neutral, the U.S. dollar will begin a cyclical decline."