Asian session review: the dollar declined against most major currencies

During today's Asian trading, the US dollar declined against the euro and the japanese yen. Pressure on the dollar is exerted by an increase in risk appetite associated with optimism about the signing of a bill on measures to help the US economy during the coronavirus pandemic.

"In general, the adoption of financial assistance measures in the US is an incentive for those who are betting on a lower dollar, although the weakness of the US national currency is generally restrained”, said Vishnu Varathan, director of economics and strategy at Mizuho Bank.

The House of Representatives of the US Congress on Monday approved the increase in incentive payments requested by President Donald Trump in the conditions of COVID-19 from $600 to $2 thousand. The bill was passed with 275 votes in favor and 134 against. The measure is expected to face opposition in the Senate. On Sunday evening, Trump signed the country's budget for the 2021 fiscal year of $2.3 trillion, which includes a package of measures to support the economy in the face of a pandemic of $900 billion.

The British pound is rising against the dollar. On the eve of the Committee of Permanent Representatives (Coreper) of the EU countries approved the temporary application of the Agreement on Trade and Cooperation between the EU and the UK after Brexit, reached on December 24. The final decision of the EU Council on the accelerated written procedure is also expected on Tuesday. The temporary application of the agreement will take effect from January 1, 2021.

The ICE index, which tracks the dollar's performance against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona), fell 0.28%.