Asian session review: The dollar declined against most of the world's currencies

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

Investors are assessing the latest comments from Janet Yellen, the former chairman of the Federal reserve system (Fed), nominated by US President-elect Joe Biden for the post of Treasury Secretary. In a speech at a Senate Finance Committee hearing on Tuesday, Yellen called on lawmakers to "act on a large scale" to avert a prolonged economic downturn, and brushed aside concerns about the growing volume of the US national debt.

At the same time, Yellen confirmed her commitment to market-based exchange rate formation and made it clear that the US does not seek a weaker national currency to gain competitive advantages. She called the attempts of some countries to artificially manipulate their currency unacceptable.

On Wednesday, Biden will be inaugurated. Last week, Biden proposed a new package of stimulus measures, including, in particular, another round of direct payments to Americans, an increase in additional payments to unemployment benefits and an extension of this program for a longer period.

Meanwhile, the People's Bank of China (PBOC) kept its benchmark loan interest rate (LPR) unchanged for the ninth straight month as the economy continues to recover from the COVID-19 pandemic crisis. The annual LPR remained at the level of 3.85% per annum. The last time this rate was lowered was in April 2020. The rate on five-year loans was kept at 4.65%, the NBK said. Experts also did not expect a change in rates.

The ICE U.S. Dollar index, which shows the value of the U.S. dollar against six major world currencies, fell 0.23%.