Mitsubishi UFJ Financial Group senior FX strategist Lloyd Chan said in a research note that if the FOMC delivers a "slightly hawkish" hold, the dollar is likely to be supported. Their baseline assumes a hawkish-tilted hold in which the Fed keeps rates unchanged but underscores elevated inflation risks. That stance could bolster U.S. Treasury yields and the dollar and broadly weigh on Asian currencies. Continued Fed emphasis on keeping rates higher for longer would keep the risk balance tilted to

Mitsubishi UFJ Financial Group senior FX strategist Lloyd Chan said in a research note that if the FOMC delivers a "slightly hawkish" hold, the dollar is likely to be supported. Their baseline assumes a hawkish-tilted hold in which the Fed keeps rates unchanged but underscores elevated inflation risks. That stance could bolster U.S. Treasury yields and the dollar and broadly weigh on Asian currencies. Continued Fed emphasis on keeping rates higher for longer would keep the risk balance tilted toward dollar resilience.