Dollar rises as Asian FX stay calm

Dollar rose as markets awaited a planned US-China summit, leaving most Asian currencies steady and trading with low volatility.

Officials said liquidity was light across Asian FX markets, and trading volumes were subdued as investors held positions pending the talks.

The summit is scheduled for later this week, and officials said participants are watching for any language on trade and economic policy that could shift risk sentiment.

Asian FX calm before summit

If the meeting produces conciliatory language on trade, risk-sensitive currencies such as the South Korean won and Australian dollar could strengthen as capital flows into regional assets, supporting carry trades and emerging-market bond demand. If talks fail to reassure investors, the dollar may extend gains as a haven, placing additional downward pressure on Asian units.

Traders said the immediate mechanism to watch is positioning: thin liquidity can amplify moves, so small news items could trigger larger FX swings than usual. Officials said central banks in the region remain prepared to intervene if disorderly moves threaten financial stability.

Market participants will monitor developments through Friday, Sept. 25, 2026; officials said initial market reactions to summit statements are likely to appear within that window and could reshape FX flows into the following week.