It was a big hit as the yen, the Indian rupee and the Indonesian rupiah all lost ground against the dollar as did the New Zealand kiwi hit by another earthquake and Trump's startling election win. Investors seem convinced that Trump's policies will trigger inflation as talk about fiscal stimulus ripples through markets.
The Wall Street Journal noted: The People’s Bank of China weakened the daily reference rate for the yuan against the U.S. dollar to 6.8291, 0.3% weaker than Friday’s level. The yuan was fixed at its weakest level against the U.S. dollar since Sept. 9, 2009. In mainland Chinese markets, where the yuan is allowed to trade within 2% of this level, the yuan was 0.1% weaker at 6.8125. In Hong Kong, where the currency always trades freely, the yuan was 0.1% weaker at 6.8291.
The U.S. Dollar Index, which tracks the dollar’s strength against a basket of six currencies, rose 0.6% to 99.6350, its highest level since January, as yields on the U.S. 10-year Treasury note rose to 2.19%.
With most Asian markets down, the Nikkei bucked the trend rising 1.54% after news about Japan's economy growing faster than expected at 2.2% in the 3Q year-over-year. Most were expecting growth somewhere in the 0.95% range. The ASX 200 was off 0.63%, the Hang Send -1.06%, the Kospi -0.09%. The Shanghai Composite edged higher 0.48%.
In energy U.S.crude futures drifted higher 0.18%at $43.49 a barrel with Brent gaining 0.25% at $44.86. Gold lost some ground,dropping0.59%, to trade at $1,218.20 an ounce, the fourth straight session investors took a risk-on view of markets and the future as all eyes will be peeled on Trump and his moves going into the upcoming holidays.
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