Asian currencies and the U.S. dollar moved very little on Tuesday. Trading was slow. This usually happens at the end of the year. Many investors are already on holiday.
People in the market were waiting for one key update. The minutes from the U.S. Federal Reserve meeting were due later in the day. These notes are expected to give hints about where interest rates could go after 2025.
Because of this wait, most traders chose to stay cautious. There was no rush to buy or sell.
The U.S. dollar also stayed mostly flat. The dollar index barely changed against other major currencies. Dollar index futures slipped slightly by 0.1%.
The Fed minutes matter a lot right now. Earlier this month, the Fed cut interest rates. Investors want to know what officials discussed after that move. They also want to see if everyone at the Fed agrees on future rate cuts.
Inflation in the U.S. has been cooling. This has increased hopes that more rate cuts could come in 2026. Traders are already betting on several cuts next year. This has put some pressure on the dollar in recent weeks. It has also helped Asian currencies from time to time.
Still, there is no clear timeline. No one knows how fast or how deep the cuts will be. This uncertainty is keeping markets calm and directionless.
Across Asia, currency movement remained limited. Most pairs stayed within tight ranges.
The Japanese yen barely moved against the dollar. The Singapore dollar slipped slightly by 0.1%.
The South Korean won strengthened a bit, gaining 0.2%. The Indian rupee also edged higher, with the dollar falling 0.2% against it.
In China, the onshore yuan rose as the dollar dropped 0.2%. The offshore yuan also gained slightly.
The Australian dollar was one of the few movers. It rose 0.3% against the U.S. dollar.
