SINGAPORE- Bitcoin was the notable mover as it reached for one-month highs on Monday, sustaining its rally after the Federal Reserve’s super-sized rate cut last week, while the yen extended its decline in markets thinned by a Japanese holiday.

The dollar strengthened against the yen last week after policy meetings in both the United States and Japan, hitting its highest level in two weeks at 144.50 yen It was around 144.16 on Monday.

The Bank of Japan (BOJ) left interest rates unchanged last week and indicated it was not in a hurry to hike them again. That decision, coming just days after the Fed’s 50 basis points (bps) rate cut, put a pause to the yen’s sharp gains this month. The currency is up 1.4 percent  in September.

With Japan closed for Autumnal Equinox Day, the main driver of trade was expectations around further Fed rate cuts and the gains those have spurred in equities, commodity currencies and other risk assets.

Bitcoin was up 1.8 percent  at $63,954, hovering near one-month highs. Ether was 3 percent  higher at 2,660.30, near its highest since late August.

Chris Weston, head of research at Pepperstone, said the ‘goldilocks macro backdrop’ is the key factor driving the solid upside momentum.

“For now, this is a rally that is there for chasing. As we’ve seen over the years, when Bitcoin goes on a run, the trends can be powerful and FOMO can really get the crypto players fired up”

The Australian dollar was 0.4 percent  higher at $0.68355digesting its rise of more than 3 percent  in less than two weeks.

The US dollar index which measures the greenback against six major currencies, was at 100.75, continuing to stay above the one-year low it hit last week. Euro was flat at $1.1165.

The Fed’s rate cut “appears to have calmed market fears of a US recession”, Goldman Sachs said in a note. “Our G10 FX team expect a slight rebound for the US dollar over the next 3 months, before easing again on a 6- and 12-month view.”