Ahead of Fed Decision, Won and Rupiah Weaken While Ringgit Strengthens

Asian currency markets came under renewed pressure on Wednesday (28 October 2026). Ahead of the US Federal Reserve’s interest-rate decision, most regional currencies weakened against the US dollar.

Of the 10 Asian currencies monitored, seven were in negative territory. Only two gained, while one was unchanged.

The South Korean won recorded the sharpest decline in morning trading, falling 0.92% to KRW1,338.5 per US dollar.

The Philippine peso followed, weakening 0.19%, while the rupiah slipped 0.14% to Rp18,170 per US dollar. The Indonesian currency moved closer to its all-time intraday low of Rp18,190 per US dollar.

The Thai baht fell 0.12%, the Singapore dollar lost 0.05%, the Vietnamese dong declined 0.03%, and the Chinese yuan edged down 0.02%.

Against the broader weakness, the Malaysian ringgit posted the strongest gain, rising 0.12%. The Taiwan dollar also edged up 0.02%.

The Japanese yen was unchanged at JPY157.94 per US dollar.

The US dollar entered the day of the Fed decision in a relatively strong position. At the same time, the US dollar index (DXY) rose 0.08% to 102.405, after gaining 0.30% in the previous session.

The index remained near a two-week high, sustaining pressure on several Asian currencies.

Markets are now focused on the outcome of the Federal Open Market Committee (FOMC) meeting. They are almost entirely pricing in the Fed holding interest rates in the 3.75%-4.00% range.

According to CME FedWatch, the probability of the Fed keeping rates unchanged at this meeting is about 91%.

With a hold already widely anticipated, investors will instead focus on signals about the Fed’s next move, particularly the possibility of an interest-rate increase in December.

“The Fed does not need to raise interest rates today to move markets. It only needs to change perceptions of the likelihood of a rate increase in December,” Chris Weston, head of research at Pepperstone Group, told Reuters.

The Fed’s statements matter because even a small shift in views about December could immediately alter market expectations for US interest rates and the direction of the dollar.

The yield on 10-year US government bonds also remained high, at around 4.9967%, helping to sustain the appeal of dollar-denominated assets.