Early on Monday, the US dollar is trading bearish against the Japanese yen and the euro over rising expectations for rate cuts by the Fed even as other leading central banks like the BOJ and the ECB have little room for further easing with negative rates. At the time of writing, the US dollar index is trading at around 97.93.

The US dollar has been losing its safe haven appeal lately ever since higher number of cases of coronavirus are being reported across the world, raising fears of the global economy slipping into a possible recession. Over the last week, the Japanese yen gained as much as 3.2% of its value against the US dollar, as investors rushed towards it as a safe haven currency.

A US bank lobby economist has predicted that leading central banks could announce a coordinated rate cut as soon as this Wednesday to offer some relief to the global economy amid rising risks of a recession in the wake of the coronavirus outbreak. Meanwhile, according to CME FedWatch, markets expect a 100% likelihood of a Fed rate cut this month by at least 0.25% and a 25% likelihood of a 0.50% rate cut.