The dollar fell slightly during Asian trading hours as financial markets priced in a higher probability of a 50 basis point rate cut by the Federal Open Market Committee this week.

However, Kristina Clifton, a foreign exchange strategist at Commonwealth Bank of Australia, said liquidity remained thin as markets in Japan and China were closed for public holidays. She said the federal funds rate futures market showed a 60% chance of a 50 basis point rate cut by the Federal Reserve, compared with a forecast of around 50% on Friday.

Clifton added that the dollar could fall this week as the global easing cycle weighs on safe-haven currencies. However, if the Fed's dovish expectations are dashed at this meeting, the dollar could rebound later this week. (Golden Ten) #opbnb