Asian session review: the dollar declined against major currencies

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

The head of the Federal Reserve Bank of St. Louis, James Bullard, said on Friday that the Fed could raise its key rate at the end of 2022.Bullard noted that the bias in the "hawkish" rhetoric at the last meeting of the Fed is "natural", given the recent high inflation figures.

The Fed kept the interest rate on federal funds in the range of 0% to 0.25% at the end of the June meeting. The Fed also said it will continue to buy back $120 billion worth of assets each month " until significant progress is made towards the goals of maximum employment and price stability." These decisions coincided with the forecasts of economists and market participants.

At the same time, Fed Chairman Jerome Powell said at a press conference that Fed officials at the June meeting began discussing a possible reduction in the asset purchase program.

The ICE index, which tracks the dollar's performance against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona), fell 0.03%. The dollar index is near 10-week highs, having shown last week the strongest growth since March 2020 against the background of the "hawkish" tone of the Fed.