The cooling of expectations for a Fed rate cut and the strengthening of the dollar are limiting the potential for Asian currencies.

According to Mars Finance, citing Jinshi, a recent report from CIMB's Treasury and Markets Research Department shows that the Singapore dollar weakened slightly against the US dollar during Thursday's Asian trading session due to market expectations that the Federal Reserve might pause interest rate cuts. Federal Reserve Governor Cook recently expressed caution regarding inflation, and several other Fed officials share similar concerns. Analysts point out that unless inflation slows further and there are no major negative surprises in the labor market, the Fed's policy rate is expected to remain unchanged for some time.