Dollar Slips As Trump Takes Rein, Most Asia Markets Up

Dollar slips as Trump takes rein, most Asia markets up

HONG KONG, , (Pakistan Point News - APP - 23rd Jan, 2017 ) - The Dollar retreated against most of its peers Monday, with warnings of wild volatility ahead as Donald Trump kicked off his presidency promising to put Americas first and hitting out at global trade deals. While trading floors are ravaged by uncertainty over the tycoon's plans, shares in most Asian markets were higher Monday following a positive lead from Wall Street, though Japan's Nikkei tanked as the greenback slipped against the yen.

Trump's inauguration speech Friday continued his campaign rhetoric, saying "every decision on trade, on taxes, on immigration, on foreign affairs will be made to benefit American workers and American families". However, he again provided no colour on what he intends to do to ramp up the world's top economy but on Sunday vowed to start renegotiating the North American Free-Trade Agreement during upcoming talks with Mexico and Canada. Shane Oliver, Sydney-based global investment strategist at AMP Capital Investors, told Bloomberg news: "Markets are now waiting for more evidence that Donald Trump will deliver on fiscal stimulus and deregulation.

"Shares remain vulnerable to a further correction or consolidation in the next month or so." But the dollar -- which soared in November and December on expectation his big-spending, tax-cutting, deregulation plans would fan inflation -- continued to struggle in January. In early trade Monday it bought 113.60 yen, well down from 114.60 Yen Friday and more than four percent down from the highs touched late in December. It was also well down against the euro and pound despite ongoing concerns about Britain's exit from the European Union.