Asian session review: the US dollar rose against most currencies

During today's Asian trading, the US dollar rose against the euro, yen and pound. Overall, the US dollar index is in the black after the highest drop in almost 10 years in July.

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.

"What people are desperately waiting for is good news regarding the control of coronavirus infection. This, I think, is the most important thing. When buying or selling a particular currency, traders take into account the degree of control of the coronavirus, rather than the fundamental stability of the respective economies," said the chief executive of Eurizon SLJ Capital Ltd. Steven Jen.

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) rose by 0.31%. In July, the index fell 4.4%, its worst monthly performance since September 2010. On Friday, its value increased by 0.4%.