Asian currencies consolidated against the dollar in early trade ahead of the FOMC decision due later today. CBA's Carol Kong in a research report said seguintes: “We expect the FOMC to keep the Fed Funds rate unchanged, though one or two may dissent in favor of a hike.” The analyst noted a courts chance the majority vote to increase the rate.

Kong added that hawkish commentary from the Fed is likely after the policy meeting, which could push the greenback higher. The U.S. dollar remained little changed at 163.86 yen and was flat at 1.2922 Singapore dollars, LSEG data show. The market reaction reflects uncertainty over the Fed’s stance and the potential for a rate hike.

As traders await the FOMC announcement, the dollar’s stability may influence Asian currency pairs and global risk appetite. Market participants are watching the Fed’s tone closely, weighing the possibility of higher rates and their implications for currency valuations.