The dollar dropped after the Federal Reserve on Wednesday cut interest rates by half a percentage point, citing greater confidence that inflation will continue to recede to the U.S. central bank's 2% annual target.

Asian stocks made a cautious start on Monday in a week that is almost certain to see the start of an easing cycle in the United States with the only question mark being the size of the cut, with markets split on the chance of an outsized move.

A half-point interest-rate cut by the Fed on Wednesday wouldn’t necessarily signal the U.S. is heading into recession, according to BlackRock’s Rick Rieder.