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Investors Cautious Ahead Of Central Bank Decisions

Asian Forex Markets Remained Relatively Stable On Monday As Traders Awaited Key Interest Rate Decisions From Major Central Banks. The U.S. Federal Reserve, The Bank Of Japan, And The People’s Bank Of China Are All Set To Announce Their Policies This Week. Investors Treaded Carefully, Analyzing New Economic Data And Potential Policy Shifts.

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U.S. Dollar Holds Steady Near Recent Lows

The U.S. Dollar Index Stayed Unchanged At 103.71 In Early Asian Trading. It Remained Slightly Above The Four-month Low Recorded Earlier This Month. Traders Expect The Federal Reserve To Keep Interest Rates Steady In Its Upcoming Policy Meeting. However, Market Participants Will Closely Monitor Comments On Inflation And Economic Growth, Particularly Regarding Tariffs.

Japan And China Set To Announce Interest Rate Policies

The Bank Of Japan (BOJ) Is Scheduled To Meet On March 18–19. While Inflationary Pressures Have Increased, Policymakers Are Expected To Maintain The Current Rate Of 0.5%. Market Observers Believe Japan’s Trade Tensions With The U.S. Could Influence The Central Bank’s Outlook.

Meanwhile, China’s loan Prime Rates Will Be Released On Thursday. The Chinese Yuan’s onshore USD/CNY And offshore USD/CNH Exchange Rates Showed Little Movement On Monday.

Taiwan, Australia, And South Korea See Mixed Currency Moves

The Taiwan Dollar (USD/TWD) Gained 0.1%, Ahead Of The Country’s Quarterly Monetary Policy Meeting This Thursday. Similarly, The Australian Dollar (AUD/USD) Edged 0.1% Higher.

Conversely, The South Korean Won (USD/KRW) Declined 0.3%, Reflecting Investor Caution In Emerging Asian Markets. Meanwhile, The Indian Rupee (USD/INR) Saw A Slight 0.1% Uptick.

China Unveils Plan To Boost Domestic Consumption

On Sunday, China Introduced A special Action Plan To Stimulate Domestic Consumption And Support Economic Growth. The Initiative Aims To Increase Household Incomes, Lower Financial Burdens, And Enhance Consumer Confidence.

Additionally, Newly Released Economic Data Showed Mixed Trends. Industrial Production Grew 5.9% Year-on-year In The First Two Months Of 2025, Exceeding Expectations. Meanwhile, retail Sales Rose 4.0%, Largely Driven By Lunar New Year Spending. However, The urban Unemployment Rate Increased To 5.4%, The Highest Level In Two Years.

These Figures Highlight The Importance Of China’s Latest Measures To Sustain Economic Momentum And Achieve Its 5% Growth Target For 2025.

Conclusion

With Multiple Central Bank Meetings Scheduled This Week, Forex Traders Are Closely Monitoring Global Monetary Policies. Stability In Asian Forex Markets Will Depend On Interest Rate Decisions From The U.S., Japan, China, And Taiwan. Investors Should Stay Informed And Adapt Their Strategies Based On New Economic Developments.

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