Asian currencies held steady against the dollar in early trade, as investors digest a softer outlook on U.S. rate hikes. New York Fed President Williams told markets the policy stance is well‑positioned to bring inflation back to the Fed’s 2% goal, prompting a modest easing of rate‑rise expectations. The sentiment lifted risk‑on assets while keeping the yen and yuan near recent lows.

The dollar quoted 161.79 yen and steadied at 6.8014 offshore yuan, while the Australian dollar slipped 0.1% to US$0.6898, LSEG data showed. Currency strategist Samara Hammoud of CBA noted that markets trimmed expectations for additional U.S. hikes this year, a shift that could buoy Asian exporters dependent on a weaker greenback. The dip underscores broader risk aversion, yet support levels keep downside limited.

With the Fed’s tightening cycle appearing less aggressive, Asian central banks may face less pressure to intervene, allowing currencies to trade in narrower ranges. Traders will watch upcoming inflation readings for clues on whether the Fed will maintain its current stance, a factor that could keep the yen and yuan anchored near today’s levels. Core CPI surprises could shift tone, but currently bands stay tight.