Asia FX steady at start of 2026; dollar dips amid Fed easing bets

At the start of 2026, the Asian FX market shows a generally steady movement. This stability is backed by hints from the Federal Reserve regarding more-than-expected easing measures. Market participants sense an increasing possibility of rate cuts, impacting the dollar's value. Specifically, the dollar is weakening against other currencies, encouraging investors to adopt a risk-taking stance. Asian currencies are comparatively stronger due to the softness of the dollar, with emerging market currencies gaining attention. However, depending on future economic indicators and the Fed's policy, there remains a possibility of a dollar rebound. The market is closely watching the Fed's next decision, as it could lead to significant volatility in the FX markets. Thus, while the current Asian FX market remains stable, external factors are expected to affect it considerably, necessitating a cautious trading strategy.