Asian session review: the US dollar rose against major currencies

During today's Asian trading, the dollar rose moderately against major currencies, and was preparing to record a weekly gain, as continuing concerns about a coordinated attack on short positions of hedge funds in the United States increased demand for safe assets.

At the same time, the introduction of the COVID-19 vaccine worldwide is facing challenges. In Europe, production delays have escalated into a spat between the European Union and drug manufacturers over how best to manage the limited supply available.

Experts note that the more medium-term question is how US fiscal policy will affect US interest rates, the Fed's policy and, consequently, the US dollar.

The ICE dollar index, which tracks its performance against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona), rose 0.29%.

The dollar index has rebounded after falling to a three-year low earlier this month on the grounds that last year's decline happened too quickly.

However, many analysts expect the dollar to return to the downward trend that caused it to lose almost 7% of its value last year, as the new US government implements massive budget spending, while the Federal Reserve maintains its ultra-easy monetary policy.