Dollar Steadies, Asian Currencies Hold Breath Ahead of BOE and BOJ Decisions

The US dollar stabilized on Thursday after the Federal Reserve kept interest rates steady, as widely expected. This decision provided little new directional impetus for currency markets, with the greenback consolidating recent gains. The Fed's statement reiterated a cautious stance on inflation, noting that it remains elevated.

The Asian currencies traded in a subdued range due to this dollar stability. Most of them moved in narrow bands against the US dollar. The Japanese yen remained near the 150 level against the dollar, as traders awaited the Bank of Japan's policy decision on Friday.

The People's Bank of China's daily fixing for the Chinese yuan remained within a tight range, supporting the currency. Other Asian currencies such as the Singapore dollar, South Korean won, and Thai baht showed limited movement, reflecting a wait-and-see mood among investors.