Bitcoin Soars on Rate Cut

23 Sep 2024 , 10:22 AM

Bitcoin was the notable mover, reaching one-month highs on Monday, extending its run following the Federal Reserve’s massive rate decrease last week, while the yen and most other major currencies remained flat with Japanese markets closed.

The Bank of Japan (BOJ) held interest rates unchanged last week, indicating that it was not in a hurry to raise them again. That move, coming only days after the Fed’s 50 basis point rate cut, slowed the yen’s rapid gains this month. The currency rose 1.4% in September.

With Japan closed for Autumn Equinox Day, the main driver of trade was the prospect of future Fed rate reduction and the subsequent advances in equities, commodity currencies, and other risk assets.

The US dollar index, which measures the greenback against various currencies, rose marginally to 100.8, remaining above its one-year low set last week.

Bitcoin was up 0.8% above $63,200 and close to one-month highs. The Australian dollar was unchanged at $0.68, digesting a more than 3% gain in less than two weeks.

The dollar rose against the yen last week following policy discussions in the United States and Japan, reaching its highest level in two weeks at 144.50 yen. It was around 144.08 early Monday.

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