Strong US dollar, Trump policies pulling the rug from under some Asian, trade-exposed economies
Affected countries will be grappling with cheaper exports to the US, and costlier US dollar-denominated imports
THE US dollar has surged with Donald Trump’s win in the US presidential elections, and Asian policymakers and economists are watching the uptrend like hawks.
In just the past month, the US currency has jumped 2.5 per cent against the Singapore dollar, and nearly 3.9 per cent on the ringgit. It has also strengthened 3.7 per cent on the yen. Measured from the election in early November, it has shot up 2.7 per cent and 3.4 per cent, respectively, against the Singdollar and the ringgit.
Cheaper exports and investments
CIMB director of investment research and advisory Jason Kuan said the weaker Singdollar, ringgit and yen would make the three countries’ exports more competitive, compared with the exports from countries with relatively stronger currencies.
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