U.S. Dollar Rises As U.S. President-elect Donald Trump Wins
(RTTNews) - The U.S. dollar strengthened against other major currencies in the Asian session on Tuesday, as investors believed that they would benefit from the upcoming government of Donald Trump.
Though the markets are optimistic that Trump's policies such as tax reductions and deregulation will help boost corporate earnings, they see an uptick in inflation amid proposed increase in tariffs that will complicate the US Fed's interest-rate plans.
Investors await key U.S. inflation readings, reports on retail sales and industrial production, and FOMC member commentary for additional clues to the Fed's rate trajectory.
In the Asian trading today, the U.S. dollar rose to nearly a 3-1/2-month high of 0.8818 against the Swiss franc, a 6-day high of 1.2837 against the pound and a 5-day high of 154.06 against the yen, from yesterday's closing quotes of 0.8805, 1.2869 and 153.71, respectively. If the greenback extends its uptrend, it is likely to find resistance around 0.89 against the franc, 1.26 against the pound and 156.00 against the yen.
Against the euro and the Canadian dollar, the greenback advanced to 1.0638 and 1.3949 from Monday's closing quotes of 1.0654 and 1.3924, respectively. The greenback may test resistance around 1.05 against the euro and 1.38 against the loonie.
Looking ahead, Germany ZEW economic sentiment for November is set to be released in the European session.
In the New York session, U.S. NFIB business optimism index for October, Canada building permits for September, U.S. Redbook report, U.S. consumer inflation expectations for October are slated for release.
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