The dollar rose against the yen last week after monetary policy decisions in US Japan hit a two-week high of 144.50 yen. The dollar traded at 144.16 yen on Monday.
And I stay Bank of Japan The Fed left interest rates unchanged last week and signaled it was in no rush to raise them again. The decision, which came just days after the U.S. Federal Reserve cut interest rates by 50 basis points, ended a strong run of gains for the yen this month. The Japanese currency rose 1.4 percent in September.
With markets closed for a holiday in Japan, the main driver of trading has been expectations of further interest rate cuts in the United States and the resulting gains for stocks, currencies, commodities and other riskier assets.
Bitcoin rose 1.8 percent to $63,954, hovering near a one-month high. Ether also rose 3 percent to $2,660.30, near its highest since late August.
The Australian dollar rose 0.4 percent to $0.68355, extending gains of 3 percent in less than two weeks.
The dollar index, which measures the performance of the greenback against six other major currencies, reached 100.75, remaining above the lowest level in a year recorded last week.
The euro settled at $1.1165.
According to the CME Group’s FedWatch tool, futures traders expect the Fed to cut rates by 75 basis points by the end of this year, and cut them by 200 basis points by December 2025, bringing the interest rate to 2.75 percent by the end of next year.
Most economists polled by Reuters expected a 25 basis point rate cut at each of the Fed’s last two meetings this year.
The Bank of England left interest rates unchanged on Thursday, with its governor saying the bank should be “careful not to cut too quickly or too much”.
Sterling was little changed at $1.3315, remaining close to highs hit on Friday after strong UK retail sales data.
