Asian session review: the dollar traded steadily against the euro

During today's Asian trading, the US dollar traded steadily against the euro and rose against the yen, slightly recovering from the decline noted at the end of the previous session.

The new strategy of the Federal reserve system (Fed), which allows inflation to rise above 2%, means that interest rates in the US will remain low for a long time, and this is a positive factor for risky assets, including the currencies of Asian countries, with the exception of Japan, experts say. At the same time, the dollar is likely to remain weak in such conditions.

Last week, the Fed approved a new strategy centered on changing the approach to inflation targeting. The long-term goal of the Fed remains inflation at 2%, but the Fed considers it " appropriate to use monetary policy to achieve inflation slightly above 2%" if it has remained below 2% for a long time.

The Japanese currency is also getting cheaper against the euro amid mixed statistics on the country's economy. Retail sales in Japan fell 3.3 percent in July from the previous month after jumping 13.1 percent in June, official data showed. The drop, which was marked for the first time since April, experts attribute to a renewed increase in the incidence of COVID-19 in some parts of the country.

Meanwhile, industrial production in Japan increased at a record pace in July - by 8% compared to the previous month, according to preliminary data. The consensus forecast was for a 5.8% increase.

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 0.06% in trading.