Forex
Dollar Holds Gains Ahead of Fed Decision, Yen Slips to One-Week Low
The US dollar held onto its gains on Wednesday as markets awaited key policy decisions from the Federal Reserve and Bank of Japan. The dollar-yen relationship remains central to Asian FX markets, with traders anticipating a rate hike from the BOJ.
The USD/JPY pair rose 0.2% to 155.34, pushing the yen further away from its recent seven-month high. Markets see an approximately 80% probability of a rate hike by the BOJ on Friday.
Other Asian currencies were mixed, with the South Korean won weakening against the dollar and the Chinese yuan remaining resilient. The yuan has held onto its gains despite low interest rates in China compared to elsewhere.