Asian session review: the dollar rose against major currencies after falling the day before

The US dollar index is rising on Tuesday after falling the day before to the lowest level in two years. 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), adds 0.16% during trading. On Monday, it fell 0.8%, to its lowest since June 2018. Since the beginning of July, the dollar index has lost 3.8% and may show the worst result since April 2011.

Demand for the US currency increased sharply in March this year, when the global economy faced a crisis as a result of lockdowns imposed around the world to curb the spread of the coronavirus. Measures taken by state governments, as well as Central banks, to support the economy, supported stock markets and contributed to the weakening of the dollar.

In recent weeks, the trend to weaken the dollar has increased against the background of an increase in the incidence of coronavirus infection in the United States, with signals of recovery in economic activity in other regions of the world. The Euro - dollar exchange rate on Monday rose to its highest level since September 2018.

The focus of traders ' attention is the two-day meeting of the Federal reserve system, starting on Tuesday. The Central Bank is expected to confirm its commitment to maintaining interest rates close to zero for a long time, which will continue to put pressure on the dollar.