Asian Markets Higher

The dollar index, which tracks the greenback against a basket of currencies, remained near a 14-year high at 101.81.

The dollar has been on a tear ever since Donald Trump’s surprise presidential election victory on November 8. A Trump administration or “Trumponomics” was expected to boost fiscal stimulus and inflation in the U.S. Moreover, the recent strong economic data out of the U.S. and rising market expectations for a Fed hike in December are also helping to drive the greenback higher.

The dollar’s climb had spurred a selloff across emerging markets, dubbed a Trump tantrum.

The People’s Bank of China set the yuan mid-point fix at 6.9168 against the dollar, compared with the currency pair’s last close at 6.918. The dollar/yuan was trading at 6.9139 as of 11:13 am HK/SIN.

The Australian dollar was steady at $0.7427 against the dollar late Friday morning, compared with levels below $0.735 last week.

“Commodity prices and oil supply cut headlines are providing essential support for the commodity bloc,” Stephen Innes, senior trader at Oanda, said in a note on Friday.

CNBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Stephen Innes

Stephen Innes

Senior Currency Trader and Analyst at OANDA
Stephen has over 25 years of experience in the financial markets and specializes in Asian currencies at OANDA. After having started his trading career with NatWest Bank, he is currently based in Singapore as a Senior Currency Trader and Analyst with OANDA, focusing on the movement of the Aussie Dollar and ASEAN Currencies. Stephen has an extensive trading experience in Interest Rate Futures, Money Markets and Precious Metals. Prior to joining OANDA, he worked with organizations like Cambridge Mercantile, Nat West, Garvin Guy Butler, Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes
Stephen Innes

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