Asian currencies consolidate against the dollar but may strengthen on dimmer Fed rate‑hike prospects following the FOMC meeting’s outcome and Fed Chairman Warsh’s press conference on Wednesday. Warsh “acknowledged that nominal and real yields had increased materially between meetings,” CBA’s Samara Hammoud says in a research report. Markets have interpreted this as leaning on yields to deliver the tightening, rather than signalling an imminent policy action from the Fed, the international economist and currency strategist adds. The U.S. dollar falls 0.2% to 1,438.70 won, but is little changed at 1.2886 Singapore dollar, LSEG data show.

Foreign‑exchange markets are focusing on the BOJ’s forward guidance at its two‑day meeting that starts today, Stone X’s Matt Simpson says in commentary. They are eyeing “whether the BOJ upgrades its growth outlook, and whether it continues to view inflation risks as skewed to the upside,” the senior market analyst says. “The lack of a hawkish surprise remains the most likely outcome, which could weigh on the Japanese yen,” he says. However, “traders should always be on guard for a surprise when the BOJ is involved, as it has a long history of catching markets off guard,” Simpson adds. The dollar is 0.1% lower at 163.22 yen, LSEG data show.