Asian currencies displayed limited movement due to ongoing geopolitical tensions and uncertainty surrounding U.S. trade tariffs. The U.S. dollar inched lower as the market anticipates the Federal Reserve’s policy decision.

Key Drivers of Currency Movements

• Geopolitical Risk: The Israel-Iran conflict keeps safe-haven demand heightened for both the U.S. dollar and Japanese yen.
• Fed Policy Outlook: Weak U.S. economic indicators spark expectations of a dovish approach from the Federal Reserve.

Upcoming Market Events to Watch

• PBOC Announcement: Anticipation surrounds the People’s Bank of China’s loan prime rate decision, which could impact the yuan significantly.
• Fed Statement: Monitor Fed Chair Powell’s language which may influence future rate expectations and dollar strength.

Investors must keep a close eye on these developments, as they will shape market dynamics amid continued volatility in Asian currencies.