Asia-Pacific FX News Wrap | September 16, 2025
The US dollar remains under sustained pressure as global markets await the outcome of the Federal Open Market Committee (FOMC) policy meeting, scheduled for tomorrow. The currency has continued to edge lower in early European trading, reflecting market expectations for a dovish Federal Reserve stance.
Market Expectations
Investors have fully priced in a 25 basis-point rate cut, with approximately 67 basis points of easing projected by year-end. The conviction for further accommodation has been reinforced by the political backdrop, with former President Donald Trump’s influence over the central bank continuing to shape sentiment.
The key uncertainty lies in whether the Fed will deliver a more hawkish message in its statement and press conference to support the greenback, or whether the dollar will weaken further to new lows for 2025 following the decision.
Political and Institutional Developments
In a related development, a US federal court rejected Trump’s case against Federal Reserve Governor Lisa Cook, ensuring her participation in this week’s FOMC meeting. However, Trump is expected to pursue an appeal to the Supreme Court.
Separately, the US Senate confirmed Stephen Miran—Trump’s nominee—as a new Federal Reserve Governor. His presence at the meeting highlights the shifting dynamics within the institution at a critical moment for monetary policy.
Outlook
With trading volumes subdued in the Asia-Pacific session, market attention is firmly fixed on Chair Jerome Powell’s press conference following the policy announcement. The Fed’s guidance will be decisive in determining whether the dollar finds relief or extends its slide amid mounting expectations for easing.