Markets are currently placing odds at 65% for a quarter-point cut on December 18, according to CME Group’s (NASDAQ:CME) FedWatch tool.
The dollar rose 0.6% to 153.50 yen, reflecting some weakness from Friday, when the pair tracked long-term US Treasury yields lower.
On the other hand, minutes of the Bank of Japan’s monetary policy meetings in October showed that officials were divided over when they could raise interest rates again, although the market reaction was muted.
US bond markets were closed on Monday for Veterans Day, although Wall Street will be open.
