Against the yen, the U.S. dollar was up 0.38% at 153.98

Risk-sensitive currencies including the Australian dollar rose on Monday, while safe havens like the yen dropped.

Against the yen, the U.S. dollar was last up 0.38% at 153.98. The Aussie firmed 0.72% versus the dollar to $0.6538.

The Australian currency is sometimes used as a barometer of sentiment toward global growth, and often moves in line with equity markets, which were higher on Monday.

The dollar index was little changed on the day at 99.59 and the euro dropped 0.03% to $1.1561.

There were also domestic factors shaping both the yen and Aussie dollar.

Japanese Prime Minister Sanae Takaichi on Monday said she would work on setting a new fiscal target extending through several years to allow more flexible spending, essentially watering down the country’s commitment to fiscal consolidation.

Separately, the Bank of Japan’s (BOJ) summary of opinions on Monday also said that the “fog surrounding Japan’s economic outlook has begun to clear compared with July,” potentially paving the way for a rate hike in December, which would help support the currency.

There is over-excitement that this will be complete Abenomics. We are expecting another hike by the BOJ, said Salman Ahmed, global head of macro and strategic asset allocation at Fidelity.

Meanwhile, Reserve Bank of Australia (RBA) Deputy Governor Andrew Hauser said in a speech that the country’s financial conditions are closer to a neutral rate of interest – one that is neither stimulative nor a drag on the economy.

The speech, which came across as hawkish, propelled the Australian dollar higher, said analysts at Westpac in a note.