Fed Awaits Data as Asian Investors Shake Up Currency Markets

The dollar held steady on Wednesday as the Federal Reserve prepared for a policy meeting amid economic uncertainty. Meanwhile, Asian investors pulled funds from U.S. assets as trade discussions between the United States and China offered some relief over trade war fears. Currency markets in Asia experienced significant volatility.

The dollar maintained stability on Wednesday ahead of the Federal Reserve's policy meeting, set against the backdrop of economic uncertainty. Asian investors, reacting to market fluctuations, continued withdrawing funds from U.S. assets.

Saturday's scheduled talks between the United States and China provided some relief, as concerns over a potential trade war that had stirred market confidence eased. Investors have been moving funds from lower-yielding markets back home, halting the recent selling of the dollar.

The Taiwan dollar's remarkable rally, a reaction to U.S. tariffs, created ripples across Asian currencies. Meanwhile, the Korean won hit heights not seen in six months, only to fall back. China's rate cut announced Wednesday aims to support its economy amid ongoing trade tensions.

(With inputs from agencies.)