spending plan: It was trading at 107.95 on Tuesday afternoon, according to The Japan Times. The yen tumble has defied all expectations, given a Trump presidency was expected to trigger a rush to safe-havens such as the Japanese currency and gold as the freewheeling former reality TV star stance on trade, foreign policy and immigration had spooked policymakers and investors around the world. The dollar marked a five-month high above 108.50 on Monday, having sunk to almost 101 just a week ago as financial markets were gripped by turmoil in the wake of Trump stunning upset. However, in a surprising U-turn, the dollar has surged as markets have gravitated to the view that Trump would usher in reflationary policies under a big fiscal spending plan, sending U.S. Treasury yields soaring. The different rules include the prospect of the Federal Reserve hiking rates more frequently than anticipated next year to keep up with an economy humming on additional fiscal stimulus. With the possibility of reflationary policies being enacted, the market is bracing for a new bull phase under a different set of rules, said Koji Fukaya, president of FPG Securities in Tokyo.
(news.financializer.com). As
reported in the news.
Tagged under spending plan, tuesday afternoon topics.