AFP, Hong Kong :
The dollar suffered fresh pressure on Friday as traders cash in the recent gains fuelled by Donald Trump’s tax cuts, while Asian equities were on course to end a strong year in tepid fashion.
Asia’s biggest markets have enjoyed huge gains over the past year-with Hong Kong up more than a third and Tokyo 20 percent higher-fuelled by expectations that Donald Trump would push through business-friendly measures.
And while he suffered a series of stumbles he managed to finish 2017 with one major legislative achievement-across-the-board tax cuts that include the slashing of corporate rates.
Focus is now on his programme for the next 12 months, with an infrastructure spending bill promised, though there are warnings of headwinds with his low poll ratings and mid-term elections in November that could see his Republicans lose the Senate.
However, despite the positive news from Federal Reserve interest rate hikes, a stronger economy and improving employment, the dollar has been unable to break away from its peers.
On Friday the euro was at one-month highs, while the pound was also in the ascendancy. Most high-yielding currencies including the Australian dollar, South Korean won and Indonesian rupiah were up.
“Whether it’s month-end flows or simply that there are no catalysts to buy dollars at the moment that traders can grasp doesn’t matter,” Greg McKenna, chief market strategist at AxiTrader.
“What matters is that for months now, the dollar has been unable to capitalise on its improved economic outlook, on the tightening plans of the Fed and on the reality that … there is clear policy and timing divergence between the Fed and other central banks.”
In holiday-thinned share trading Hong Kong was up 0.1 percent and Shanghai added 0.2 percent.
Tokyo ended the morning 0.3 percent higher, with tech titan SoftBank rising 0.5 percent after announcing a deal to take a huge stake in US ride-sharing giant Uber.
The dollar suffered fresh pressure on Friday as traders cash in the recent gains fuelled by Donald Trump’s tax cuts, while Asian equities were on course to end a strong year in tepid fashion.
Asia’s biggest markets have enjoyed huge gains over the past year-with Hong Kong up more than a third and Tokyo 20 percent higher-fuelled by expectations that Donald Trump would push through business-friendly measures.
And while he suffered a series of stumbles he managed to finish 2017 with one major legislative achievement-across-the-board tax cuts that include the slashing of corporate rates.
Focus is now on his programme for the next 12 months, with an infrastructure spending bill promised, though there are warnings of headwinds with his low poll ratings and mid-term elections in November that could see his Republicans lose the Senate.
However, despite the positive news from Federal Reserve interest rate hikes, a stronger economy and improving employment, the dollar has been unable to break away from its peers.
On Friday the euro was at one-month highs, while the pound was also in the ascendancy. Most high-yielding currencies including the Australian dollar, South Korean won and Indonesian rupiah were up.
“Whether it’s month-end flows or simply that there are no catalysts to buy dollars at the moment that traders can grasp doesn’t matter,” Greg McKenna, chief market strategist at AxiTrader.
“What matters is that for months now, the dollar has been unable to capitalise on its improved economic outlook, on the tightening plans of the Fed and on the reality that … there is clear policy and timing divergence between the Fed and other central banks.”
In holiday-thinned share trading Hong Kong was up 0.1 percent and Shanghai added 0.2 percent.
Tokyo ended the morning 0.3 percent higher, with tech titan SoftBank rising 0.5 percent after announcing a deal to take a huge stake in US ride-sharing giant Uber.
