MUFG: USD Likely to Gain Support if Fed Holds Rates in Hawkish Tone Today

MUFG-2.87%
According to Lloyd Chan, senior foreign exchange analyst at MUFG Bank, the U.S. dollar is likely to receive support if the Federal Reserve maintains interest rates unchanged with a hawkish stance at today's FOMC meeting. MUFG's base case is a hawkish hold, during which the Fed may emphasize that inflation risks remain elevated. This could provide support to U.S. Treasury yields and the dollar, potentially weighing on Asian currencies broadly.
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