The dollar climbed after the U.S. election and was also accelerated by the Federal Reserve’s interest rate hike, indicating a possible reckoning in the following months for economies around the world. The WSJ Dollar Index reached a 14-year peak.
The euro was stable at $1.0427 and the dollar was flat at 118.250 yen. The resurgence of the dollar in 2016 has sent currencies from Japan and India to Turkey and Brazil falling and has presented firms, governments and consumers in those nations a few concerns ahead. Emerging market currencies also suffered a new blow from the Fed’s newest decision. China has set the yuan’s midpoint at its weakest since 2008. A firm dollar raises the buying power of U.S. consumers through making foreign travel and imported products cheaper.
Brazil’s real slipped as much as two percent overnight as the South Korean won and the Indonesian Rupiah saw their worst losses since Trump’s victory.
The material has been provided by InstaForex Company – www.instaforex.com