Gold Finance reported that the US dollar fell in the Asian session on Monday as traders increasingly bet on the Federal Reserve cutting interest rates by 50 basis points this week. The decline in the dollar boosted major currencies such as the Japanese yen, which rose to its highest level since July 2023.

After weeks of debate over whether the Federal Reserve would start its easing cycle 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 rate decision this week show a roughly 58% chance of a 50-basis-point cut, compared to a 50/50 forecast late Friday.

“We think this is the start of a new easing cycle for the Fed, and that’s a headwind for the dollar,” said Rodrigo Catril, a strategist at National Australia Bank. "The dollar will begin its cyclical decline as the Fed eases monetary policy over the next year, bringing the funds rate down to neutral and potentially even below neutral."