USD Mixed After Fed’s Meeting; Risk of Rebound

The USD is mixed against Asian currencies after the Fed’s meeting. While there was nothing new in the FOMC statement, Fed Chairman Powell’s assessment of the U.S.’s growth rebound, Covid-19 situation and a strong undertaking to keep policy support intact for longer demonstrates a dovish commitment, Maybank says. Technical charts indicate the USD Index’s daily momentum is bearish, but the relative strength index is showing some signs of turning around from oversold conditions. “We continue to caution for risk of rebound,” Maybank says. The ICE USD Index is down 0.1% at 93.33 while USD/KRW is little changed at 1,190.90 and USD/SGD edges 0.1% higher to 1.3749.