interest rates: Donald Trump economic policies could go badly wrong but not soon enough Read more Donald Trump presidential election victory has put a fire under the US currency as investors bet that the incoming administration would boost government spending, causing higher inflation and interest rates, according to The Guardian. The trend continued when Federal Reserve chair Janet Yellen signalled last week that a December rate rise in the United States was increasingly likely. On Monday evening the local unit stood at US73.22c, down from US73.89c on Friday. Comm Sec Comm Sec AUD continues to decline against the Greenback, fetching 73.27 US cents FX Bloomberg currency 21, 2016 A huge selloff on the global bond market has also seen money flow into the greenback, putting further pressure on other currencies such as the Aussie. Many economists expect the recent rise in commodity prices to go into reverse as the impact of China last round of monetary stimulus wears off and the country big importers of coal and iron ore run down inventories again. National Australia Bank foreign exchange strategists have forecast the Aussie dollar to drop towards US70c during 2017, and even lower in 2018.
(news.financializer.com). As
reported in the news.
Tagged under interest rates, government spending topics.