Asian currencies mixed as dollar holds gains, yen slips to one-week low

On Wednesday, Asian currencies remained relatively stable, as the U.S. dollar gained ground, nearing multi-week highs. The Japanese yen, however, slipped to a one-week low, while the New Zealand dollar weakened against the greenback. The USD/JPY pair rose 0.2%, pushing the yen further away from its recent seven-month peak. The Australian dollar hovered around $0.7128, while the South Korean won weakened slightly against the U.S. dollar.

The Chinese yuan remained resilient, holding its gains despite a growing gap between China's low interest rates and those of other countries. Traders were closely watching the Federal Reserve's policy decision and the Bank of Japan's meeting, which could impact the dollar's strength. The dollar's upward trend was fueled by expectations of rate hikes, driven by rising energy prices due to the Middle East conflict.