Asian session review: the US dollar rose against major currencies

During today's Asian trading, the US dollar rose amid risk aversion by investors following the Federal Reserve Board meeting.

The US Central Bank noted a slowdown in the recovery of economic activity and employment in the US due to the renewed increase in the incidence of COVID-19. The future trajectory of the economy will largely depend on the development of the epidemiological situation in the United States, including progress in vaccination, the Federal Open Market Committee (FOMC) said in a statement issued after the meeting.

The Fed has made cautious forecasts for the next few months due to the slow pace of vaccination. "We think we have a fight ahead of us. The pandemic continues to pose serious risks to the economy, " Federal Reserve Chairman Jerome Powell said.

The Federal Reserve left the interest rate on federal loan funds in the range of 0% to 0.25% per annum at the end of the meeting. The central bank also confirmed that it will keep asset repurchases at at least $120 billion a month "until there is significant progress in meeting the committee's goals for maximum employment and price stability."

"The cautious tone adopted by the Federal Reserve regarding the slow pace of vaccination attracted the attention of traders, and this contributed to the strengthening of the dollar," IG experts note.

The ICE dollar index, which tracks its performance against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona), rose 0.12%.