Most Asian currencies strengthened against the U.S. dollar in early trading as risk appetite improved. Analysts from Commerzbank Research noted that the Federal Reserve cut interest rates as expected, marking the third consecutive rate reduction, but markets perceived the move as less hawkish than anticipated.
The analysts added that Fed Chair Jerome Powell described the decision as "a further normalization of our policy stance," expressing optimism about the U.S. economy and stating that the inflationary impact of tariffs would likely be temporary.
The U.S. dollar fell 0.3% against the Japanese yen to 155.60 yen, declined 0.3% against the South Korean won to 1,465.03 won, and slipped 0.1% against the Singapore dollar to 1.2918 Singapore dollars.
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