Sri Lanka Equity Forum
Dear Reader,

Registration with the Sri Lanka Equity Forum would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
Sri Lanka Equity Forum

Discussion Forum for Stock Market Investors in Sri Lanka

සිංහල පරිවර්තනය
Submit Post
Submit Post

Latest topics

» #PM Crisis#
by Ryan Hudson Today at 9:16 am

» Financial Reports Q-3 2018
by ruwan326 Today at 7:19 am

» ##FUN TOONS###
by ruwan326 Today at 7:06 am

» TBs worth Rs.14.2 bn issued to SriLankan in 2012
by ruwan326 Today at 6:42 am

» MARKET RISE - GUARANTEED
by samaritan Yesterday at 9:22 am

» SRI LANKA @ 2020
by ruwan326 Yesterday at 7:24 am

» Dealing by directors
by ruwan326 Fri Nov 16, 2018 9:08 pm

» Summary of Key Announcements during the week
by ruwan326 Fri Nov 16, 2018 9:06 pm

» Daily Foreign Transactions
by ruwan326 Fri Nov 16, 2018 9:05 pm

» CSE WEEKLY
by ruwan326 Fri Nov 16, 2018 9:02 pm

» BFN Price HOLDING ON AS THE DEAL COME CLOSER
by sanjulanka Fri Nov 16, 2018 1:29 pm

» Another Finance sector deal UBC UBC UBC Deal
by kalu351 Fri Nov 16, 2018 10:56 am

» BFN BFN BFN BFN BFN DEAL ......WITH CHINESE BANK
by kalu351 Fri Nov 16, 2018 10:54 am

» MARKET CRASH - GUARANTEED
by Maharaja Fri Nov 16, 2018 9:32 am

» Q-TO-Q Financial Report-Financial Performance- Period ended 30 September 2018
by ruwan326 Thu Nov 15, 2018 9:00 pm

» CB raises key rates in surprise move to support currency
by Miss-Sangeetha Thu Nov 15, 2018 4:59 pm

» President rejects NCM brought against PM, Govt.
by ranferdi Thu Nov 15, 2018 2:36 pm

» DIVIDEND ANNOUNCEMENTS- OCT/NOV
by ruwan326 Thu Nov 15, 2018 1:59 pm

» Supreme Court issues stay order on Gazette dissolving Parliament
by THUWA Wed Nov 14, 2018 5:28 pm

» CSE THIS WEEK
by ruwan326 Wed Nov 14, 2018 8:27 am

» Veterans return to lead state banks
by ruwan326 Wed Nov 14, 2018 8:21 am

» Collect ODEL Range Rs. 23-25 .......Target Price over Rs.35
by soileconomy Tue Nov 13, 2018 8:54 pm

» අනං## මනං ##
by ruwan326 Tue Nov 13, 2018 8:52 pm

» JKH News & Reports
by ruwan326 Tue Nov 13, 2018 8:11 pm

» Survey - Individual Investors' Behaviour and Investment Performance
by eroshans Tue Nov 13, 2018 3:49 pm

» USD/MXN Can Face A Bearish Reversal
by GersonH Mon Nov 12, 2018 10:22 pm

» EURUSD breaks major horizontal support
by GersonH Mon Nov 12, 2018 10:18 pm

» EURCHF is headed south
by GersonH Mon Nov 12, 2018 10:14 pm

» EURUSD: the pair is close to the lower boundary of the B-B channel
by GersonH Mon Nov 12, 2018 10:12 pm

» Parliament dissolved from midnight ????????
by Yahapalanaya Mon Nov 12, 2018 6:24 pm

You are not connected. Please login or register

Sri Lanka Equity Forum » Stock Market Talk » Dollar surges, Asia markets dive on Fed rates signal

Dollar surges, Asia markets dive on Fed rates signal

Go down  Message [Page 1 of 1]

PrasannaMani

avatar
Manager - Equity Analytics
Manager - Equity Analytics
[size=32]Dollar surges, Asia markets dive on Fed rates signal[/size]
2016-12-16 00:00:50
 0
 104

     


The dollar surged against its peers yesterdau and most Asian markets tumbled after the Federal Reserve indicated it will likely embark on a steeper path of interest rate hikes over the next year.
Investors were sent scurrying on the prospect of tighter borrowing costs as the Federal Reserve positions itself for an expected jump in inflation if Donald Trump makes good on promises to ramp up infrastructure spending and slash taxes.
While the decision to lift rates had been a certainty, a plan to hike them three times rather than the expected twice jolted trading floors.
The news sent the dollar soaring well past 117 yen and its highest level since February, while it also bulldozed other currencies, particularly higher-yielding, riskier, units and those of emerging market nations.
“This is flat out hawkish, and the US dollar is reacting accordingly,” Stephen Innes, senior trader at OANDA, said in a note. “I thought we would be calling (Fed chief Janet Yellen’s) bluff this morning, as the market had expected at most a subtle shift in Fed language.
“However, the Fed’s forward guidance is in reaction to Trumpflation as Dr Yellen did little to quell the markets’ pent up view that both growth and inflation will accelerate in 2017.”
In Asian trade the greenback pushed towards 118 yen and jumped more than one percent against the Australian and Canadian dollar while their New Zealand counterpart was almost two percent down. The Mexican peso also tumbled.
The dollar was also up 0.7 percent on the South Korean won and 0.6 percent versus Indonesia’s rupiah. The Thai baht, Malaysian ringgit and Singapore dollar also suffered heavy losses.
- ‘Big event’ -
In her post-announcement conference, Yellen said the rise was a reflection of “the confidence we have in the progress that the economy has made and our judgment that that progress will continue”.
However, the upbeat outlook for the key driver of global growth was unable to comfort Asian traders worried about a flood of cash out of their own economies as dealers look for better returns in the US. Hong Kong sank 1.8 percent, with property firms hammered. The city’s monetary policy is linked to the US and its de facto central bank on Thursday followed the Fed lead to raise interest rates, feeding worries about its already struggling economy. Shanghai lost 0.7 percent as traders fret about further outflows of cash, with China’s foreign exchange reserves already being hammered by attempts to support the yuan which is sitting at an eight-year low against the dollar.
Sydney was 0.8 percent lower and Singapore 0.9 percent. Manila was 0.7 percent down while Taipei, Kuala Lumpur and Wellington were also sharply lower. Seoul was flat.
However, Tokyo was up 0.2 percent -- heading for a ninth successive gain -- as the weaker yen provided support for exporters.
Greg McKenna, chief market strategist at CFD and FX provider AxiTrader, said: “This is a big event... the Fed has straight-batted it but is hiking and signalling more than the market expected just on current economic settings.”
The decision also led to sharp increases in the yield of 10-year US Treasury bills, while gold -- a safe investment in times of uncertainty -- fell almost two percent to $1,140.
-AFP

- See more at: http://www.dailymirror.lk/article/Dollar-surges-Asia-markets-dive-on-Fed-rates-signal-120732.html#sthash.47gd0c5k.dpuf

himesh


Equity Analytic
Equity Analytic
රේට් වැඩි කරන එකත් කරන්න අමාරුයි. මිනිස්සුන්ගේ ආයොජන අඩු වෙලා ඉතිරිකිරීම් වැඩි වෙනවා. එතකොට ආන්ඩුව හිර වෙනවා. සමාජවාදී රටකටනම් පුලුවන් ණය අරන් ආයෝජනය කරලා බිල්පත් ණය ගෙවන්න. ඒත් ඇමෙරිකාව ?

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum