The dollar remained stable at the onset of Asian trading on Thursday, as market participants await interest rate decisions from the European Central Bank and the Bank of England, both anticipated to maintain current rates later in the global trading session. The U.S. dollar index, reflecting the strength of the greenback against a selection of six currencies, increased by 0.2% to 96.671, after approaching a two-week high earlier in the trading session. The euro remained stable at $1.1800 in anticipation of the European Central Bank’s decision, which is anticipated to maintain current rates. Investors will concentrate on the post-policy press conference to assess the future trajectory of interest rates in the upcoming months. “The emphasis will likely be on higher uncertainty,” with only minor tweaks in communication, according to analysts from Bank of America, who expect the ECB to hold rates later in the day. “Our conviction in a March cut is not rock solid, but we remain convinced of an easing bias from here.”

The British pound held steady at $1.3650 as the market anticipates the Bank of England’s upcoming policy decision, with expectations leaning towards maintaining the current stance. The U.S. dollar was trading at 156.92 yen, maintaining stability as Japan’s election campaign approaches its conclusion ahead of the upcoming poll on Sunday. The dollar has shown an increase in strength this week as financial markets evaluate the ongoing U.S. corporate earnings season, which is now at its midpoint, while stocks adopt a risk-off stance. The Nasdaq Composite has experienced a decline of 2.9% over the last two days, marking its most significant drop since October. This volatility has been influenced by major market players, including Alphabet, which announced ambitious capital expenditure plans in conjunction with its earnings report on Wednesday. Additionally, there has been a downturn in software stocks as they navigate the transition to a new era of generative AI.

With the onset of the Asian trading session, Federal Reserve Governor Lisa Cook expressed in her speech a greater concern regarding the stagnation of inflation progress rather than the weakening labor market. This serves as a clear indication that she is unlikely to endorse another interest-rate cut until the price pressures stemming from tariffs start to diminish. The implied probability of 90.6% indicates that market participants expect the U.S. central bank to maintain its current interest rates during the upcoming two-day meeting concluding on March 18, a figure that remains consistent with the previous day’s assessment, as reported. The dollar experienced a slight decline of 0.1% against the Chinese yuan trading offshore in Hong Kong, settling at 6.9386 yuan. This movement followed a phone conversation between U.S. President Donald Trump and Chinese President Xi Jinping, during which they addressed topics including trade, security concerns, and U.S. arms sales to Taiwan.

The Australian dollar experienced a 0.1% increase, reaching $0.70045, after the release of trade balance data that slightly surpassed market expectations. The New Zealand dollar exhibited a slight increase of 0.1%, reaching a value of $0.60045. Following a recent selloff, cryptocurrencies have shown signs of stabilization, with digital assets reaching their lowest levels since November 2024. Bitcoin is currently up 0.2% at $72,745.23, while ether has increased by 1% to $2,146.63.