During today's Asian trading, the US dollar consolidated against major currencies, following a significant increase on Friday.
The ICE index, which tracks the dynamics of the dollar against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona), rose by 0.02%.
Traders continue to evaluate the decisions of the world central banks made following the results of the meetings held last week. So, the Federal Reserve System announced an increase in the pace of reducing asset repurchases and made it clear that it could raise the interest rate three times in 2022.
Christopher Waller, a member of the Fed's board of governors, said on Friday that the Fed will probably have to raise the rate "soon after" the completion of the asset repurchase program. In this regard, there were forecasts that the first Fed rate hike could occur as early as March next year.
The yuan declined slightly against the US dollar after the news that the People's Bank of China (PBOC) lowered the loan prime rate. The annual loan rate was reduced to 3.8% from 3.85% (for the first time since April 2020), while the five-year loan rate remained at 4.65%. The five-year rate has remained unchanged since April 2020. Some economists predict a reduction in the five-year rate in the near future, which will slightly reduce the cost of mortgage loans and help the authorities' efforts to maintain demand for housing.