Currencies Hold Steady Ahead of Federal Reserve Policy Decision

On Tuesday, major currencies showed modest movements as markets awaited the Federal Reserve's monetary policy announcement scheduled for Wednesday, FX Street reported. The NZD/USD pair traded nearly flat around 0.5785, while the USD/MXN hovered near 17.40, marking a third consecutive session of slight losses for the Mexican peso.

Despite softer-than-expected US economic data, the US dollar maintained a broadly firm tone, according to FX Street. Strategists at BNY, John Velis and David Tam, highlighted elevated US supercore inflation as a key factor supporting the case for further tightening, though they currently favor holding rates steady in July.

For Japanese investors, the Fed’s upcoming decision remains a critical event, as its outcome could influence global risk sentiment and impact FX and equity markets in Japan, especially with ongoing sensitivity to US monetary policy shifts.