The yen remained under pressure after hitting multi-month lows last week, amid expectations that the BOJ may maintain or even ease policy

Most Asian currencies dropped on Monday, while the Indian rupee bounced back from record lows on possible central bank intervention.

The yuan’s offshore USD/CNH pair ticked 0.1% higher, while the Singapore dollar’s USD/SGD ticked up 0.2%.

The won’s USD/KRW pair dropped 0.5%, with the currency leading regional losses.

The Australian dollar’s AUD/USD pair was largely unchanged.

The yen remained under pressure after hitting multi-month lows last week, amid expectations that the Bank of Japan (BOJ) may maintain or even ease policy while the new administration led by Sanae Takaichi pursues expansionary fiscal-monetary measures.

The yen’s USD/JPY pair edged 0.1% higher on Monday after climbing more than 1% last week.

Yen’s weakness was tempered somewhat after officials in Tokyo escalated warnings that currency intervention remains an option if the decline becomes disorderly.

The weakness in the Japanese Yen was also another key driver and focus of markets with spillovers to Asia FX, with domestic concerns around the path of Bank of Japan rate hikes, the size of fiscal policy stimulus, coupled with tensions between the Japan and China relationship, MUFG analysts said in a note.

The Indian rupee’s USD/INR pair declined 0.5% after soaring more than 1% to a record high of 89.72 rupees on Friday. Reports showed that possible intervention by the Reserve Bank of India (RBI) helped arrest the rupee’s decline.

In the U.S., the probability of a 25-basis-point rate cut by the country’s central bank in December jumped to nearly 69% from around 44% a week earlier, according to the CME FedWatch Tool.

The rise in expectations reflected comments from John Williams of the New York Fed, suggesting policy adjustment is possible in the near term. However, a number of central bank officials have cautioned that inflation remains too high and the labour market too tight for a cut at this stage, leaving the outcome uncertain.