During today's Asian trading, the US dollar fell against the major currencies, but remained above the weekly low reached yesterday. The yen fell to its lowest level since mid-August, as treasury yields hit their highest level since early July.

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 0.30%

The safe-haven dollar suffered after Beijing poured new money into the financial system on Thursday, when Evergrande announced that it would pay interest on the mainland bond. However, some offshore bondholders said they did not receive coupon payments before the deadline on Thursday. Additional interest on dollar-denominated bonds is due to be paid next week.

Hawkish comments from the Bank of England on Thursday lifted yields around the world, a day after the US Federal Reserve said it could start reducing monthly bond purchases as early as November, and interest rates could rise faster than expected by next year.

The Bank of England said that two of its politicians voted to stop buying government bonds as soon as possible, and the markets postponed their expectations of an interest rate increase to March.

Westpac believes that the dollar index will grow slightly by the end of the year, but in the near future it will remain in the range of 92.0–93.5.