Cryptocurrency Bitcoin hit a three-month high in early Asian trading on Monday and the dollar looks set to extend gains in markets counting down to the U.S. presidential election in two weeks.

Election polls show rising chances of former President Donald Trump winning the Nov. 5 election, giving the dollar a boost as his proposed tariff and tax policies are seen as likely to keep U.S. interest rates high and trade partners' currencies appreciating undermine.

Currency moves in major markets last week were driven by the European Central Bank's dovish interest rate cut and strong U.S. data, which increased expectations about how quickly U.S. interest rates can fall, particularly if Trump wins the presidency.

The yen fell 0.1% to 149.32 per dollar, remaining on the stronger side of 150 per dollar after briefly breaking that level last week for the first time since early August.

The Dollar index The value against its main competitors was 103.45. It fell 0.3% on Friday as risk appetite broadly increased across markets after China announced further details of its sweeping stimulus package, but was up 0.55% this week. The euro remained unchanged at $1.0866 and sterling also remained unchanged at around $1.3045.

Bitcoin benefited from Trump's improving outlook as his administration is expected to take a softer stance on cryptocurrency regulation. It was last up 0.8% at 69,400 BTC= and is up 18% since October 10th.

In the absence of major economic events this week, the market's focus will be on corporate earnings and U.S. election risk, as well as potentially a rise in the cost of hedging dollar and other portfolio risks, said Chris Weston, head of research at the Australian online broker Pepperstone, in an interview note.

“With just 15 days until the US election, traders must decide whether now is the right time to place election trades with greater conviction,” Weston said.

The clearest way to express Trump tariff risk was to buy the dollar against the euro. Swiss franc And Mexican pesohe said.

Brad Bechtel, global head of FX at Jefferies, also noted that rising real interest rates would benefit the dollar, particularly against these three currencies.

“We expect this trend to continue into the election, and if Trump wins, likely well after the election,” Bechtel wrote.

Last week the yen fell 0.3%, the euro fell 0.6%, the pound sterling was flat and the dollar index rose 0.55%. The Mexican peso fell 3%.

The euro is down more than 3% in three weeks, breaking through its 200-day moving average and near a 2 1/2-month low.