The dollar is expected to continue to weaken, investors target Asian stock
2020-11-10


Investing.com – As Democrat Biden wins the US election and the vaccine has good news, the continued weakness of the dollar provides investors with another reason to be optimistic about Asian stock markets.
 
 
 
On Monday, the Bloomberg JP Morgan Chase Asian Dollar Index, a measure of the region’s currency against the U.S. dollar, approached its highest level since June 2018. On Monday, the MSCI Asia Pacific Index closed at a nearly two-year high.
 
 
 
A weaker dollar indicates a higher risk appetite and is seen as a positive factor for the growth of emerging Asian economies. The strength of the local currency also helps strengthen the country’s balance sheet.
 
 
 
John Woods, the chief investment officer of Credit Suisse Asia Pacific, said: "In the case of a weak U.S. dollar, American investors usually look for growth and profit opportunities overseas, especially in Asia."
 
 
 
Market observers believe that the dollar's weakness will continue. The good news about vaccines may encourage people to chase higher-risk assets and stay away from traditional safe havens.
 
 
 
At the same time, UBS Global Wealth Management Chief Investment Officer Mark Haefele (Mark Haefele) said that Democrats may not be able to obtain the support of the Senate to pass any large-scale stimulus package, which will increase the pressure on the Fed to take more radical actions. Support the economy.