• Asian session review: the dollar declined against major currencies

Market news

19 March 2021

Asian session review: the dollar declined against major currencies

TimeCountryEventPeriodPrevious valueForecastActual
00:01United KingdomGfk Consumer ConfidenceMarch-23 -16
00:30AustraliaRetail Sales, M/MFebruary0.3%0.4%-1.1%
03:00JapanBoJ Interest Rate Decision -0.1%-0.1%-0.1%
07:00GermanyProducer Price Index (YoY)February0.9%2%1.9%
07:00GermanyProducer Price Index (MoM)February1.4%0.7%0.7%
07:00United KingdomPSNB, blnFebruary-3.1-21-19.1


During today's Asian trading, the dollar fell against the euro and the yen. The day before, the dollar index rose following the growth of US Treasuries yields, which traditionally supports the dollar.

The rise in US Treasury bond yields is a signal that investors are putting the rapid recovery of the US economy and the strengthening of inflation in the country thanks to mass vaccination and a new stimulus package in the market.

According to experts, the rise in US Treasuries interest rates suggests that traders are concerned about the possibility of increased inflation in the long term. However, the fact that the Chairman of the Federal Reserve System Jerome Powell is not concerned about the growth of US Treasuries yields provides further potential for the dollar to rise.

Following the results of the meeting that ended on Friday, the Bank of Japan kept the short-term interest rate on deposits of commercial banks in the Central Bank at -0.1% per annum, and the target yield on 10- year government bonds of Japan -near zero.

The Bank of Japan has increased the allowed range of fluctuations yields on 10-year government bonds - now it will be from -0.25% to 0,25% (up from -0.2% to 0.2%).

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 0.20%.

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