Asian currencies slipped as the U.S. dollar inched higher ahead of today’s CPI release. The Singapore dollar fell to 1.2877 per U.S. unit, while the won weakened to 1,523.60 and the baht to 32.96, LSEG data show. MUFG’s Lloyd Chan warned that a hotter‑than‑expected inflation print would cement “higher‑for‑longer” rate bets and keep the dollar firm amid unresolved U.S.–Iran tensions.

Middle‑East friction remains a drag on risk appetite, Chan added, limiting appetite for emerging‑market assets. Meanwhile, Bank of Japan policymakers are expected to raise rates next week, a move already priced into the market. BofA’s Shusuke Yamada notes a roughly 50% chance of a hike by October, with a stronger‑than‑anticipated stance potentially boosting the yen. Such a move could also lift bond yields.

The yen hovered near 160 per dollar, supported by speculation of possible intervention, OCBC’s Sim Moh Siong said. A breach above 160 has stalled, suggesting authorities may step in if weakness persists. Traders will watch the CPI outcome and BOJ guidance for clues on the dollar’s trajectory, but the greenback’s modest gains already pressure regional currencies. Investors remain wary of further dollar upside.