Most Asian currencies showed small changes on Monday, while the dollar weakened ahead of key regulator meetings.
Most Asian currencies remained virtually unchanged on Monday, while the US dollar continued to decline ahead of an active week of central bank meetings.
The dollar index fell 0.17 percent during Asian trading. The US Federal Reserve will begin a two-day meeting on Tuesday, and markets expect the rate to be kept at 4.0 percent. This will happen after a 25 basis point hike in September.
The Japanese yen showed no noticeable movements ahead of the Bank of Japan meeting, which will take place later this week. The central bank is forecast to keep the rate at 1.25 percent, but may present a tighter forecast amid persistent inflation.
The Chinese yuan strengthened slightly and updated a four-year high. The USD/CNY pair reached its lowest level since June 2022 thanks to a series of strong average rates set by the People's Bank of China. Analysts link the yuan's support to a desire to ease trade tensions and create space for possible policy easing.
On Monday, the fifth plenum of the Communist Party began in China, which will last until Thursday. Plans for fiscal support of the economy may be presented there.
The decline in oil prices after reports of an upcoming meeting between representatives of the Mecca Pact countries and Iranian officials provided some support to regional markets. However, Asian currencies remain under pressure due to concerns about high inflation in the US and rising rates in developed countries.
The Singapore dollar and the South Korean won remained virtually unchanged. The Australian dollar fell 0.07 percent, while the Indian rupee rose 0.3 percent and remained near record levels.