Asian session review: the dollar fell against most major currencies

During today's Asian trading, the US dollar index fell significantly after a jump of 1.5% at the end of the previous session.

The ICE index, which tracks the dynamics of the dollar against six currencies (Euro, Swiss franc, yen, canadian dollar, pound sterling and Swedish Krona), finished seven of the last eight trading sessions higher and rose more than 8% during this time.

Currently, the dollar index is at its highest since the beginning of 2017, despite a sharp reduction in the base interest rate by the Federal reserve, while usually policy easing by the Central Bank leads to a weakening of the national currency.

Experts warn that the US currency will not become cheaper, despite the significant easing of the Fed's policy, given the huge demand for dollars in the world in the context of the crisis caused by the coronavirus pandemic.

Many companies are holding on to cash, expecting serious business problems due to the coronavirus pandemic, financial institutions are building up dollar reserves, while investors are selling everything from stocks to bonds and commodities. Against this background, demand for the dollar is increasing, and for several days in the past two weeks, the dollar index was the only indicator that was in the "green zone".

On Thursday, the Fed announced the opening of currency swap lines with 9 countries to improve foreign countries ' access to dollar liquidity.