RBA Raises Interest Rates to 4.35% Amid Rising Inflation Risks and Middle East Tensions 
BOJ Governor Kazuo Ueda Hints at Rate Hike as Inflation Pressures Build 
South Korea Central Bank Signals Cautious Policy Amid Inflation and Middle East Tensions 
BOJ Rate Decision in Focus as Yen, Inflation, and Nikkei Hang in Balance 
Paraguay Holds Interest Rate at 5.5% as Inflation Remains Stable Amid Global Uncertainty 
ECB Signals Possible Interest Rate Move if Inflation Outlook Fails to Improve 
The USD has appreciated on a trade weighted basis in January so far; however, the appreciation in USD is mainly due to weakness in other currencies rather than specific factors that causes the USD to appreciate. The greenback appreciated on the back of declining commodity prices and rising risk aversion sentiments affecting EM currencies. The markets expect only one rate hike for this year as the global financial turmoil continues to prevail in the market.
Markets will be focused upon how FOMC evaluates the current market developments and what conclusions will be drawn for the March meet. This might have a limited effect on the dollar as markets expect a dovish stance from FOMC announcements. The FOMC's stance today on the possibility of a rate hike in March will provide guidance on interpreting the Fed's future developments
