Asian session review: the dollar declined slightly against most currencies

During today's Asian trading, the US dollar declined moderately against the euro and the australian dollar and was almost unchanged against 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 0.06%.

The dollar index retreated from the 10-week lows it touched earlier this week, amid heightened investor demand for the U.S. currency amid concerns that greater-than-expected price pressures could force the Federal Reserve to tighten monetary policy sooner than current forecasts suggest.

Consumer prices in the United States jumped 4.2% in April compared to the same month last year, according to data from the Ministry of Labor of the country, published on Wednesday. Thus, inflation accelerated from 2.6% in March and reached the highest rate in more than 12 years-since September 2008. Analysts had forecast a 3.6% rise.

Meanwhile, the European Commission yesterday improved its forecasts for GDP growth in the euro area for 2021 and 2022, thanks to an increase in the rate of vaccination against COVID-19 and the lifting of quarantine restrictions. According to the new forecast of the regulator, the euro zone economy will grow by 4.3% this year, and by 4.4% next year. The February forecast called for a 3.8% increase in GDP in both 2021 and 2022.