Asia FX subdued, dollar slips on US probe into Fed’s Powell

The Asian FX market remains subdued as the dollar slips due to US investigations into Fed Chairman Powell. Market participants are sensitive to potential issues regarding the credibility of Fed policies, contributing to the bearish sentiment surrounding the dollar. The dollar has decreased against major currencies, indicating a shift in investor risk appetite. This backdrop is influenced by growing concerns over a slowdown in the US economy, which could impact interest rate policy forecasts. The dollar index has seen a decline, particularly in the Asian market, where trading volumes are low. Participants are keenly watching upcoming economic data and Fed announcements, which may dictate future dollar movements. Amidst this situation, investors may turn to safe-haven assets like the yen and Swiss franc. Focus remains on the next FOMC actions and comments from Chairman Powell.