And expectations that Trump's plans for huge spending projects will also fan prices have lit a fire under the dollar as dealers bet the Federal Reserve will hike borrowing costs more aggressively to cap inflation. It also surged against the high-yielding units as dealers worry about Trump's protectionist plans. The dollar was also up 2.9 per cent at 20.56 Mexican pesos, close to its all-time highs. "Trump's economic policies will force the Fed to raise the funds rate at a faster pace than otherwise, which is dollar bullish." On equities markets, skittish investors sent Hong Kong 1.1 per cent lower and Seoul 0.9 per cent down, while emerging market shares were battered.

Source: The Nation Bangkok November 11, 2016 08:17 UTC