0404 GMT — USD/SGD consolidates in the afternoon Asian session ahead of the FOMC decision due out later in the global day. Consensus is for the Fed to stand pat, but its forward guidance and accompanying message should be key, Maybank analysts say in an FX Research & Strategy note. Maybank’s sense is that the Fed could keep open the possibility for a future rate increase, given the resilient U.S. economy, which essentially means a hawkish pause, the analysts add. USD/SGD is little changed at 1.3700. ([email protected])

JPY Strengthens on Report of Japan Warning of Possible Intervention

0121 GMT — JPY strengthens against other G-10 and Asian currencies following a media report regarding the Japanese government’s warning of possible intervention. The Ministry of Finance’s top FX official Masato Kanda reportedly said that “we’re on standby” to intervene after USD/JPY rose through 151 overnight, says Alvin T. Tan, head of Asia FX Strategy at RBC Capital Markets, in an email. The market appears to be probing to find where is Tokyo’s “redline” on the USD/JPY, Tan adds. USD/JPY falls 0.2% to 151.35 after touching 151.72 overnight, the highest intraday level since October 2022, according to FactSet. AUD/JPY drops 0.4% to 95.74; EUR/JPY is down 0.2% at 160.05. ([email protected])