Because the rate cut has been forecast for so long, it's largely already been priced into the value of the dollar in international markets. “Exchange rates tend to adjust when a

The dollar was lower on Monday while the yen hit its highest level in more than a year, as market participants increasingly expected an oversized rate cut by the Federal Reserve later this week.

Most traders expect the Fed to make a big initial rate cut, but one strategist says it's not necessary amid low unemployment and historically low rates.