Most regional currencies were sitting on strong gains against the dollar in recent sessions

Most Asian currencies moved little on Wednesday, while the dollar steadied from recent declines.

Most regional currencies were sitting on strong gains against the dollar in recent sessions, as increasing confidence in a U.S. rate cut stalled the currency. The dollar slipped to a two-month low on Tuesday.

But some weak economic readings weighed. The yen dropped on mixed trade data, while the Singapore dollar was pressured by a dismal export reading.

Anticipation of a Bank of Japan (BOJ) meeting this week also kept markets on edge.

The yen’s USD/JPY pair gained 0.1% on Wednesday after dropping sharply in the previous session.

Data showed the Japan’s trade balance declined less than feared in August, with exports also dropping less than expected.

But exports still remained in contraction, while substantially softer-than-expected imports indicated that demand remained weak.

The figure comes just days before a BOJ meeting, where the central bank is widely expected to leave interest rates unchanged amid heightened political uncertainty in the country.

Still, the BOJ may offer hawkish signals amid sticky Japanese inflation and relatively steady private spending. Japanese consumer inflation data for August is due before the BOJ’s rate decision on Friday.

Among broader Asian currencies, the Singapore dollar’s USD/SGD pair gained 0.1% as the country’s key non-oil exports unexpectedly declined in August.

The yuan’s USD/CNY pair shed 0.1%, encouraged by pledges of more stimulus measures from Beijing. Sustained policy support in currency markets saw the yuan stay at its highest level since November 2024.

The Australian dollar’s AUD/USD pair slid 0.1% after clocking strong gains in recent sessions, while the Indian rupee’s USD/INR pair slipped 0.1%, declining from record highs hit earlier in September.

The won’s USD/KRW pair added 0.1%.