Asian session review: the dollar fell against the euro and rose against the yen

During today's Asian trading, the US dollar declined against the euro, but rose against the yen.

The head of the US Federal reserve Jerome Powell on Friday said that the fed is "closely monitoring" the situation with COVID-19. This has given investors some optimism that the fed will cut interest rates to support economic growth in the country.

Earlier, the President of the Federal reserve Bank of St. Louis, James Bullard, said that he would support a reduction in the interest rate if the situation with COVID-19 turns into a pandemic. At the same time, he does not see the need for a rate cut, since the economy is still supported by the easing of monetary policy taken last year. "A further rate cut is possible if the epidemic grows into a global pandemic, but this is not the baseline scenario at the moment," Bullard said.

Meanwhile, market participants are increasingly confident that the fed will have to make an emergency reduction in the cost of lending if the situation with the coronavirus worsens. According to CME Group data, traders on Friday estimated the probability of a 25 basis point rate cut in March at 72%. A week earlier, the chances of this were estimated at only 9%.

Medical authorities in the United States reported the first death in the country as a result of infection with the coronavirus - in the state of Washington. A second death was later recorded there. State Governor Jay inslee declared a state of emergency that directs all state agencies to " use all resources necessary to prepare for and respond to the outbreak."

The ICE Dollar index, which shows the value of the dollar against six major world currencies, fell by 0.22% compared to the previous day.