Strong US Dollar May Worsen $54 Billion Exodus From Emerging Asia Stocks
- Dollar to remain an overhang for Asia stocks amid trade war
- Some Asian central banks seen holdings rates for longer
This article is for subscribers only.
Donald Trump’s tariffs salvo means a resurgent dollar is likely to become an even bigger overhang for Asian stocks, as it erodes the room for interest-rate cuts in a region that has seen economic growth slow.
The latest escalation of trade tensions will not only hurt exporters in the region already reeling from a slowing Chinese economy, but also fuel inflation and keep US interest rates elevated. This will make it harder for regional monetary authorities to implement easing measures.