Asian session review: the US dollar consolidated against major currencies

During today's Asian trading, the US dollar was almost unchanged against the euro and the yen.

The ICE index, which tracks the dollar's performance against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona), fell 0.04%.

The head of the US Federal Reserve, Jerome Powell, said on Wednesday that the regulator is likely to reduce asset purchases before raising interest rates.

The pound rose slightly against the US dollar and was almost unchanged against the euro. In the 1st quarter, the pound rose by 5% against the euro. This is the best quarterly growth in six years.

However, the pound began to weaken against the dollar and the euro as the effect of the confident start of vaccination in the UK decreased. The pound lost about 3% from its peak of $1.4235, which it reached in February.

The yield on ten-year UK government bonds has stabilized around 0.8% per annum after a sharp jump amid falling prices for government securities. At the beginning of the year, their yield was about 0.2%. Experts note that the further dynamics of the pound depends on whether the UK can continue to attract investment, which was a key factor in the recent strengthening.