It reached session high at 1.2485 and hit low at 1.2352 levels.
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The Sensex on the Bombay Stock Exchange was three per cent off, having initially plummeted more than six per cent on Trump’s performance and news that high-denomination notes were being pulled from circulation as part of a crackdown on tax evasion.
Other economist agree – Mexican officials will have to react soon if Trump does prevail. Data on Wednesday showed Britain’s trade deficit with the rest of the world narrowed in the three months to September took a backseat to the USA election results the pound hardly moved on the figures. Trump also will take office with Republican majorities in both chambers of the U.S. Congress that could help him implement his legislative agenda. Trump has talked about renegotiating or even ending NAFTA, the free trade deal between the U.S., Mexico and Canada.
“Investors will right now be in the process of attempting to differentiate between Trump’s actual policy positions and some of the more outlandish statements made on the campaign trail”, said Michael Levy, an emerging markets investment director at Barings.
The Canadian dollar fell to an eight-month low of C$1.3525 per dollar, before recovering around half of the day’s losses to trade down 1 percent on the day at C$1.3420.
Asian equities soared Thursday, joining a goldrush across world markets as the initial shock of Donald Trump s election win was replaced by hopes his plan to kickstart the USA economy will succeed.
“The dollar is up against most major currencies supported by an upward revision to U.S. interest expectations and focus on President-elect Donald Trump’s pro-growth and inflationary economic policies”, Elias Haddad, a senior currency strategist at Commonwealth Bank of Australia, told Bloomberg News.
The dollar reversed earlier selling against the safe-haven yen to touch a high of 105.87 yen, its highest since July 27. It broke below key chart resistance at 77 USA cents, after comfortably staying above that level for 3 straight days. It’s partly why automakers got hit hard on Wednesday from the news of Trump’s victory. The Argentine peso weakened 0.59 percent against the dollar.
It was down 8.2 per cent at 45 US cents as the prospect of a wall along the United States’ southern border – a key campaigning point for Trump – has come one step closer to reality. Germany’s main DAX index had fallen by around 1.6 percent before moving modestly into the green, and London’s FTSE-100 was rose 1 percent.
Expectations that his policy stance – from protectionism and fiscal expansion – will boost inflation have been driving the surge in US yields.
“We will see much more reaction from currency markets throughout the day as the global impact of Trump comes mainly through trade and also U.S. interest rates”. The Stoxx Europe 600 index opened about 2 percent lower but turned positive in the afternoon.
The central bank last hiked its key rate in September by 50 basis points, lifting it to 4.75 percent to anchor inflation expectations following a sharp depreciation of the peso. Longer-term bonds sold off even more, driving the yield of the 30-year up to 2.83%, compared with 2.58% on Election Day.
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Oil prices recovered along with US equities, with Brent crude up 1.4 percent at $46.66 a barrel and USA crude up 1.5 percent at $45.65.
