During today's Asian trading, the US dollar declined markedly against major currencies amid partial profit-taking and increased risk appetite in global markets.
The US Dollar Currency Index (DXY), which tracks the dynamics of the dollar against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona) fell by 0.55% to 113.47. Yesterday, the index reached a new 20-year high at 114.58.
However, experts believe that the US currency will continue to strengthen amid the rapid tightening of monetary policy by the Federal Reserve System (Fed).
Further growth of volatility in financial markets will contribute to the strengthening of the dollar due to its status as a "safe haven" currency, CBA analysts said.
Investors are also preparing for today's publication of a lot of data on the United States, the key of which will be a report on consumer confidence. Consumer confidence has been shaken amid high inflation and increased economic uncertainty. Although these two problems have not disappeared, economists expect a slight improvement in consumer confidence in September - to 104.5 from 103.2.