Stronger Currencies Hurt

Forex News

Due to Donald Trump’s continuous criticism of Chinese trade strategy, Asian officials aren’t going to restrain their currencies much. They say Trump’s comments changed the behavior in the whole foreign exchange markets. Joachim Fels (global economic advisor at bond fund PIMCO) stated: "U.S. President Donald Trump carries the bigger stick: the threat of protectionism. And so Europe and Japan have acquiesced; neither has stemmed their currencies' appreciation with words or actions."

Recently, the greenback staged a streak of large drops, which in turn reduced competitiveness of many exporting nations. Representatives of the Thailand's central bank claimed they are planning to loosen restrictions so that retail investors could purchase foreign securities. Still, some Asian policymakers aren’t happy about weakened dollar and stronger Asian currencies. South Korean auto and electronics firms have said won’s increase hurt their business. The world’s second-largest memory chip maker SK Hynix, Apple (NASDAQ:AAPL) supplier LG Display and Car maker Hyundai Motor Co all suffered from the currency impact.