Asian session review: the dollar declined against most of the world's major currencies

During today's Asian trading, the US dollar fell against most of the world's major currencies on expectations of further policy easing by the Federal Reserve in the absence of new fiscal stimulus.

Traders continue to evaluate information about the progress of lawmakers ' discussion of a new package of measures to support the economy in the crisis caused by the coronavirus pandemic. In the absence of a consensus on this issue among lawmakers, the Fed may have to resort to further policy easing.

"While the differences between Democrats and Republicans regarding the terms of the new package of measures to support the economy are quite large and may slow down progress in the negotiations, expectations of new stimulus from the Federal reserve are growing, and this contributes to the weakening of the us dollar," analysts at Mizuho Bank note.

The pressure on lawmakers is growing, with the Senate going into recess on Friday. The leader of the democratic majority in the Senate, Charles Schumer, said on Tuesday that the US Congress is moving in the right direction, and he hopes that lawmakers can reach an agreement.

The ICE index, which tracks the dynamics of the us dollar against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona), fell by 0.33%.

Meanwhile, the Chinese yuan against the dollar rose on Wednesday to its highest since March 11 on expectations that the US-China relations will not deteriorate in the near future, as the countries agreed on August 15 to hold high-level talks to assess Beijing's compliance with the terms of a bilateral trade agreement signed in January this year.