The U.S. dollar remained stable on Monday as investors looked ahead to a series of speeches from Federal Reserve officials that could provide clearer signals on future interest rate policy. The calm in early Asian trading followed last week’s volatility, driven by major central bank decisions from the Fed, Bank of England (BoE), and Bank of Japan (BOJ).
The Japanese yen eased 0.16% to 148.22 per dollar, trimming Friday’s gains after a hawkish BOJ stance revived expectations of a near-term rate hike. Sterling slipped to a two-week low of $1.3458, pressured by rising UK public borrowing and concerns highlighted in the BoE’s latest policy meeting. Analysts at Rabobank now see the next BoE rate cut pushed into 2026, but note that fiscal challenges will likely keep the pound on the defensive.
Meanwhile, the U.S. dollar index ticked higher to 97.75, extending its rebound from last week’s dip following the Fed’s rate cut. The euro edged down 0.07% to $1.1738, and the Australian dollar slipped 0.02% to $0.6589.
Traders are closely monitoring roughly ten Fed officials set to speak this week, including Chair Jerome Powell. Markets are particularly focused on new Governor Stephen Miran, who dissented at September’s meeting in favor of a deeper 50-basis-point cut. Miran is expected to elaborate on his independent stance and policy outlook in a speech later Monday.
In Asia, China held its benchmark lending rates steady for the fourth straight month, aligning with expectations. The offshore yuan was little changed, last rising 0.06% to 7.1151 per dollar.
Global currency markets remain sensitive to central bank commentary, with investors seeking direction on interest rates, inflation, and growth as policy divergence shapes FX movements heading into autumn.