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Asian currencies steady after Fed holds rates unchanged in 9-3 vote

Asian currencies steady after Fed holds rates unchanged in 9-3 vote

The yen strengthened to 163.37-163.47 per dollar after the Federal Reserve held rates steady, while energy-security risks and Bank of Japan policy expectations kept broader Asian currency moves limited.

Fact Check
The official Federal Reserve FOMC statement dated July 29, 2026 confirms rates were held unchanged at 3.5%-3.75%, matching the claim that the Fed left rates unchanged. The WSJ source directly supports the claim's narrative that Strait of Hormuz and Iran nuclear risks and higher fuel costs continued to support the U.S. dollar and that regional/Asian currencies were consolidating. CNBC and Trading Economics independently corroborate the hold, the dissents, and the energy/geopolitical drivers. All core elements are substantiated by authoritative primary and secondary sources.
Summary

Asian currencies were broadly steady against the U.S. dollar after the Federal Reserve voted 9-3 to leave interest rates unchanged, though the yen strengthened to 163.37-163.47 per dollar in New York trading as expectations for an additional U.S. rate hike faded. The euro also edged higher against the dollar, while investors weighed mixed signals on future Fed cuts, upcoming Bank of Japan policy decisions, and unresolved Strait of Hormuz and Iran-related energy risks that analysts said continued to support the dollar and could cap gains in regional currencies.

Terms & Concepts
  • FOMC: Federal Reserve panel that sets U.S. interest rates
  • Strait of Hormuz: Key oil shipping chokepoint
  • Bank of Japan: Japan's central bank