The yen’s USD/JPY pair traded nearly 163.5, keeping the currency near multi-decade lows ahead of Friday’s Bank of Japan policy decision

Asian currencies traded in tight ranges on Thursday after the U.S. central bank left policy unchanged.

Renewed tensions in the Middle East also remained in focus after the U.S. launched strikes on Irani in retaliation for Iran’s attack on American forces. That prompted investors to reassess risk appetite and the potential for further disruptions to international energy supplies.

The Singapore dollar’s USD/SGD pair traded little changed. Singapore unveiled a SGD900 million support package to help households and businesses cope with higher costs linked to renewed Middle East tensions.

The package followed the Monetary Authority of Singapore’s decision earlier this week to slightly steepen the appreciation path of the Singapore dollar nominal effective exchange rate policy band.

With geopolitical and economic uncertainties persisting, Singapore’s strong fiscal position stands out among global and regional peers, which we believe should help sustain continued investor confidence and attract further capital inflows, DBS analysts said.

The Australian dollar’s AUD/USD pair slid around 0.2%, while the New Zealand dollar’s NZD/USD pair edged modestly higher.

The yen’s USD/JPY pair traded nearly 163.5, keeping the currency near multi-decade lows ahead of Friday’s Bank of Japan policy decision.

The won’s USD/KRW pair weakened slightly, while the yuan traded in narrow ranges, with the onshore USD/CNY pair edging 0.1% lower and the offshore USD/CNH pair little changed.

The Indian rupee’s USD/INR pair, ringgit’s USD/MYR pair, baht’s 147|USD/THB pair and Philippine peso’s USD/PHP pair were broadly steady.

Focus will then shift to the Bank of Japan on Friday, with traders looking for firmer guidance on future policy tightening after prolonged weakness in the yen renewed speculation over further normalisation.

Investors will also monitor a busy economic calendar on Friday. China’s official manufacturing PMI is expected to remain at 49.9, signalling continued weakness in factory activity.