Asian session review: the US dollar was trading steadily against major currencies

During today's Asian trading, the US dollar consolidated against major world currencies.

Traders continue to follow the news from China related to the developer Evergrande, which is facing serious financial problems.

In general, the news that the pharmaceutical company Merck & Co has developed a drug for the coronavirus COVID-19, which can alleviate the course of the disease, had a positive effect on mood. This could potentially reduce the number of hospitalizations and deaths from the disease.

"In the foreign exchange market, we observed a strange change of positions, when at first only the dollar rose against the background of a sharp rise in yields in the US after the Fed meeting, and then followed by a more violent and sharp rally in the Japanese yen after USD/JPY jumped to new highs," the Saxo Bank said. - The latter is explained by a decrease in bond yields in the United States, which is due to a reduction in the share of borrowed funds."

According to the bank's analysts, if the sale of risky assets continues, and US government bonds remain on the sidelines and even begin to grow, the Japanese yen may bypass the US dollar as a "safe haven". "But, most likely, this will turn out to be only a short-term phenomenon, while profitability will grow further, as we assume in our baseline forecast," analysts said.

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