Dollar heads into 2018 on a weaker note
The dollar suffered fresh pressure on Friday as traders cash in the recent gains fuelled by Donald Trump's tax cuts, while most Asian equities were on course to end a strong year on a positive note.
Asia's biggest markets have enjoyed huge gains over the past year -- with Hong Kong up more than a third and Tokyo nearly 20 percent higher -- fuelled by expectations that Donald Trump would push through business-friendly measures.
And while he suffered a series of stumbles he managed to finish 2017 with one major legislative achievement -- across-the-board tax cuts that include the slashing of corporate rates.
Focus is now on his programme for the next 12 months, with an infrastructure spending bill promised, though there are warnings of headwinds with his low poll ratings and mid-term elections in November that could see his Republicans lose the Senate.
However, despite the positive news from Federal Reserve interest rate hikes, a stronger economy and improving employment, the dollar has been unable to break away from its peers.
On Friday the euro was at one-month highs and is up more than 13 percent over the year, while the pound was also in the ascendancy having added nine percent since January. Most high-yielding currencies including the Australian dollar, South Korean won and Indonesian rupiah were up Friday. "Whether it's month-end flows or simply that there are no catalysts to buy dollars at the moment that traders can grasp doesn't matter," Greg McKenna, chief market strategist at AxiTrader.
"What matters is that for months now, the dollar has been unable to capitalise on its improved economic outlook, on the tightening plans of the Fed and on the reality that... there is clear policy and timing divergence between the Fed and other central banks."
In holiday-thinned share trading Hong Kong was up 0.2 percent and Shanghai ended 0.3 percent higher.
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