During today's Asian trading, the US dollar declined against the euro and yen amid heightened expectations that the Fed will significantly lower its interest rate to support the US economy in the face of the spread of the coronavirus.

Expectations of a Fed rate cut rose after Fed Chairman Jerome Powell said the Central Bank was "closely monitoring" the COVID-19 situation and would use its tools to support the economy.

Futures quotes for the Fed's benchmark interest rate suggest that by the end of March, the rate will be at 1.04%, according to CME Group data. This indicates the confidence of traders that the Fed will lower the rate by 0.5% at the meeting on March 17-18 - to 1-1. 25% per annum.

Deutsche Bank experts expect the rate to be reduced by 1 percentage point this year. A rate cut would reduce the advantage in US asset returns, given that the ECB and the Bank of Japan have much less room to cut rates further.

ECB President Christine Lagarde said yesterday that the Central Bank is ready to take "appropriate" measures if necessary to support the Eurozone economy, whose growth is being held back by the spread of the coronavirus.

The Australian dollar rose almost 0.2% against the US dollar following the Central Bank's rate cut. The Reserve Bank of Australia has lowered its key interest rate to support the country's economy in the face of the coronavirus epidemic. The rate was reduced by 0.25 percentage points to a record low 0.5% per annum, and RBA chief Philip Lowe said the Central Bank could continue easing policy.