Most Asian currencies traded within narrow ranges on Tuesday as investors awaited the Federal Reserve meeting. The Japanese yen saw slight weakening after a surge, prompting intervention warnings from Prime Minister Sanae Takaichi. The market is also reacting to global geopolitical tensions. South Korea's won remained steady despite potential tariff hikes from the U.S. due to trade deal delays.

The yen's movement is central, rising to 154.50 yen on Tuesday. Speculation of government intervention remains high, especially after the Bank of Japan's hawkish stance. Concerns over fiscal spending contribute to yen volatility. The Fed's interest rate decision, expected on Wednesday, is a key factor influencing currency movements across Asia.

Asian FX markets are generally muted, with the dollar showing weakness. The dollar index and futures stabilized after recent losses. The Chinese yuan showed slight gains, while the Singapore and Australian dollars remained flat. The Indian rupee held steady. The South Korean won saw a slight dip after the U.S. tariff hike announcement.

The upcoming Fed meeting is driving caution across Asia. Investors are watching for any shifts in monetary policy. With the US economy facing mixed signals, the markets are hesitant. The impact of the Fed's decision will likely dictate the short-term direction for currencies. Further developments in international trade could also influence markets.