The US Dollar continued to strengthen against major currencies during the Asian session on Wednesday, with the US Dollar Index trading around 99.70 and marking a six-day winning streak, according to FX Street. The EUR/USD pair hovered near 1.1535-1.1530, extending its negative bias for the fifth consecutive day, while GBP/USD traded close to 1.3470 amid the dollar’s broad-based strength.
The USD/CAD pair reached a two-week high near 1.3930, maintaining a positive bias for six days, and the USD/JPY pair held steady around 155.25. Market participants are closely watching the US Federal Reserve’s interest rate decision scheduled for later on Wednesday, with the Bank of Japan’s policy announcement expected on Friday, FX Street reported.
For Japanese investors, the rising USD/JPY exchange rate ahead of the BoJ’s upcoming interest rate decision adds an important dynamic to currency and equity markets, as potential shifts in monetary policy could influence capital flows and risk sentiment in the region.