Trump Fear Fans Dollar Rally As Emerging Markets Sink
Fakhir Rizvi Published November 11, 2016 | 02:05 PM
HONG KONG, , (UrduPoint / Pakistan Point News - 11th Nov, 2016 ) - The Dollar soared against high-yielding currencies and Asian emerging markets sank Friday on the prospect of higher US interest rates, with dealers betting Donald Trump's planned huge spending policies will fire inflation.
Despite an all-time high close on Wall Street, investors across Asia turned cautious on uncertainties linked to a Trump presidency, while the Mexican peso fell back towards record lows on worries about the firebrand tycoon's anti-Mexico stance.
After an initial shock, global equities rocketed on news Trump had beaten Hillary Clinton, with investors hoping for business-friendly policies and measures to boost the US economy, a key driver of world growth.
However, there are worries about his plans after saying he will tear up several trade deals while ramping up import duties which would stoke inflation.
And expectations that Trump's plans for huge spending projects will also fan prices have lit a fire under the dollar as dealers bet the Federal Reserve will hike borrowing costs more aggressively to cap inflation.
That in turn has led to fears of large capital outflows from the region as investors go back to the US for better, safer returns. The greenback almost hit 107 Yen for the first time since July in US trade and it maintained most of the gains in Asia, sitting at 106.90 yen -- well up from the 101.20 yen touched in the initial panic of Trump's win.
It also surged against the high-yielding units as dealers worry about Trump's protectionist plans. The Indonesian rupiah plunged more than five percent at one point before halving those losses, Australia's dollar was down 1.7 percent and Malaysia's Ringgit lost 2.6 percent.
Related Topics
Recent Stories
SC orders end of encroachments in Karachi
Nazish Jahangir denies viral screenshots, calls them fake
Govt likely to hike electricity price once again
Bismah Maroof announces immediate retirement from international cricket
Malala expresses unwavering support for Gaza people
Selection committee dissolved over Pakistan women cricket team's poor performanc ..
Punjab CM Maryam Nawaz in police uniform at Chung police center
Currency Rate In Pakistan - Dollar, Euro, Pound, Riyal Rates On 25 April 2024
Today Gold Rate in Pakistan 25 April 2024
Mired in crisis, Boeing reports another loss
Session Awarding Ceremony 2024 held at Cadet College Muzaffarabad
Austrian ski great Hirscher to make comeback under Dutch flag
More Stories From Business
-
London stocks hit new record on blockbuster mining takeover bid
20 minutes ago -
Sialkot University, Ministry of Climate Change, Ethiopian embassy host business forum
40 minutes ago -
Govt likely to hike electricity price once again
2 hours ago -
Mining giant BHP launches bid to take over rival Anglo American
3 hours ago -
Gold rates up by Rs500 per tola to Rs242,500
4 hours ago -
Tokyo stocks end lower after Meta results
4 hours ago
-
EXCHANGE RATES FOR CURRENCY NOTES
6 hours ago -
Foreign exchange rates
6 hours ago -
Currency Rate In Pakistan - Dollar, Euro, Pound, Riyal Rates On 25 April 2024
7 hours ago -
Today Gold Rate in Pakistan 25 April 2024
8 hours ago -
Meta profits soar but costs of AI cause worry
9 hours ago -
Mired in crisis, Boeing reports another loss
17 hours ago