Asian session review: the dollar fell against major currencies

During today's Asian trading, the US dollar fell against major world currencies after a speech by Federal Reserve Chairman Jerome Powell.

The ICE index, which tracks the dynamics of the US dollar against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona), fell by 0.35% compared to the previous day.

During a speech at an online event hosted by the Federal reserve Bank of Kansas City, on Thursday, Powell said that the regulator has approved a new monetary policy strategy that allows for US inflation to exceed the 2 percent target at certain times. "As the economic situation is constantly in flux, the strategy of the Federal open market committee (FOMC) to achieve monetary policy goals must adapt to emerging new challenges," Powell said

Powell stressed that the longer-run goal continues to be an inflation rate of 2 percent but noted inflation will average less than that if it runs below 2 percent following economic downturns and never moves above that level even when the economy is strong. "Households and businesses will come to expect this result, meaning that inflation expectations would tend to move below our inflation goal and pull realized inflation down," Powell said.

"To prevent this outcome and the adverse dynamics that could ensue, our new statement indicates that we will seek to achieve inflation that averages 2 percent over time," he added.