Asian session review: the dollar declined slightly against most currencies

During today's Asian trading, the US dollar fell slightly against the euro and the pound, and was almost unchanged against the yen.

The ICE index, which tracks the dynamics of the dollar against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona), fell by 0.05%.

Traders continue to closely monitor the statements of representatives of the Federal Reserve System regarding the future policy of the US Central Bank. The head of the Fed Jerome Powell, who spoke earlier this week, made it clear that the Fed does not intend to rush to raise rates and will adhere to a stimulating policy.

Meanwhile, statistical data on the US economy indicate an increase in inflationary pressure in the country against the background of a rapid recovery in activity after the crisis caused by the coronavirus pandemic. Experts fear that the growth of production costs of companies will contribute to a further rise in prices and limit demand.

The president of the Federal Reserve Bank of Atlanta, Rafael Bostic, said on Wednesday that his expectations for a rise in the base rate by the US central Bank have moved to the next year from 2023. In addition, Bostic made it clear that he expects an early reduction in the volume of asset repurchases by the Fed.

The pound rose slightly against the US dollar before the Bank of England meeting. Experts do not expect the Bank of England to change the key parameters of monetary policy. However, some analysts believe that the Bank of England may tighten its rhetoric regarding the curtailment of stimulus measures taken at the peak of the coronavirus pandemic.