Won, Ringgit - Chinese Yuan Faces Severe Pressure Ahead of Crucial Fed Night
Several Asian currencies weakened against the US dollar on Wednesday’s trading session (29/4/2026). Pressure continues to stem from market participants’ stance as they await the US central bank’s interest rate announcement, the Federal Reserve.
The Fed will announce its interest rate policy today, Wednesday US time, or early Thursday Indonesian time.
According to Refinitiv at 09:35 WIB, out of 11 monitored Asian currencies, eight weakened, one strengthened, and two remained stagnant.
The rupiah is among the currencies facing the deepest pressure after weakening 0.58% to Rp17,310/USD. The deepest weakening was recorded by the Philippine peso, which corrected 0.68% to PHP 61.47/USD.
Pressure is also evident in the Thai baht, which is at THB 32.60/USD after weakening 0.37%. The Korean won followed at KRW 1,477.63/USD, down 0.29%, while the Taiwan dollar is at TWD 31.56/USD after correcting 0.17%.
The Chinese yuan and Malaysian ringgit moved more limitedly. The yuan is at CNY 6.83/USD with a slight weakening of 0.03%, while the Malaysian ringgit is at MYR 3.95/USD, down 0.03%.
The Singapore dollar also tended to weaken slightly by 0.01% to SGD 1.2766/USD.
On the other hand, the Vietnamese dong was the only Asian currency to strengthen. It is at VND 26,325/USD after a slight rise of 0.02%.
Meanwhile, the Japanese yen and Indian rupee moved stagnantly, at JPY 159.61/USD and INR 94.54/USD, respectively.
Asian currency movements today are still heavily influenced by the direction of the US dollar in the global market. The US dollar index (DXY) at 09:35 WIB was observed to weaken slightly by 0.03% to 98.614.
Market participants tend to hold back ahead of the Fed’s interest rate decision, which is expected to be the last meeting for Jerome Powell as Fed Chair before his term ends in May.
The Fed is expected to hold interest rates steady. Therefore, investor attention is not only on the interest rate decision but also on the Fed’s statement regarding US economic conditions and the impact of the Middle East conflict on inflation and economic growth.
This week, markets are also awaiting decisions from several other major central banks, including those from the European Union, the UK, and Canada.
Meanwhile, the Bank of Japan on Tuesday held interest rates at 0.75% but gave somewhat hawkish signals, opening room for future policy tightening.
On the other hand, uncertainty over the Middle East war remains a key factor for markets. Stalled negotiations between the US and Iran, coupled with the continued closure of the Strait of Hormuz, have reignited inflation concerns as that route is one of the world’s most vital energy pathways.
This situation also supports demand for the US dollar as a safe-haven asset. US President Donald Trump is reportedly dissatisfied with Tehran’s latest proposal, deeming that issues related to the nuclear programme must be addressed from the outset in any agreement.