Asian session review: the dollar consolidated against the major currencies

During today's Asian trading, the US dollar was trading steadily against the major currencies.

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 0.01%.

The index is holding near the maximum levels of the current year against the background of high demand for the assets of the "safe haven" due to the rapid spread of the new COVID-19 "delta" strain in the world. On Wednesday, the index rose above 93 points, which was noted only twice earlier this year.

"Currently, the US approach to combating a new strain of coronavirus provides for the activation of vaccination and the introduction of requirements for wearing masks," IG experts note. "This reduces the risk that an increase in morbidity will lead to a new economic downturn."

Nevertheless, it is still necessary to monitor the situation with morbidity, since potential lockdowns and restrictions on business operations remain risk factors for the US economy, experts say.

The US dollar usually strengthens when the pace of economic growth in the US is ahead of the rest of the world, or when the situation in other regions worsens, which contributes to an increase in demand for the US currency and government bonds as "safe haven" assets, experts say. The dollar usually becomes cheaper when the economies of the United States and many other countries of the world simultaneously demonstrate steady growth.