The dollar fell in Asian trading on Monday as traders increasingly bet on a 50 basis point rate cut by the Federal Reserve this week. The dollar’s decline boosted major currencies such as the yen, which rose to its highest level since July 2023.
After weeks of debate over whether the Fed would kick off its easing with a 25 basis point or 50 basis point rate cut, traders are leaning toward the latter option. Futures prices tied to the Fed’s decision to cut rates this week are pricing in about a 58% chance of a 50 basis point cut, compared with a 50-50 split late Friday.
Rodrigo Catril, a strategist at National Australia Bank, said: "We believe that the Fed is about to usher in a new round of easing cycle, which is a major negative factor for the US dollar. As the Fed eases monetary policy next year and lowers the funds rate to neutral or even below neutral levels, the US dollar will begin a cyclical decline." #美国大选如何影响加密产业？ #加密市场急跌 #灰度将推出首个美国XRP信托 #特朗普哈里斯辩论未提及加密货币 #BTC☀ $BTC