The dollar came under new pressure on Friday as traders cash in recent gains fueled by Donald Trump's tax cuts, while most Asian stocks were about to end a good year on a positive note.
The largest Asian markets have seen huge gains over the past year – Hong Kong has grown by more than a third and Tokyo by almost 20% – thanks to expectations that Donald Trump adopt pro-business measures.
And while he suffered a series of stumbling blocks, he managed to end 2017 with a major legislative achievement – generalized tax cuts that include reducing corporate rates.
Focus is now on its schedule for the next 12 months, with a bill on infrastructure spending promised, although there are warnings of headwinds with its low votes and elections mid-term in November who could see his Republicans lose the Senate.
However, despite positive news of interest rate hikes by the Federal Reserve, a stronger economy, and improved employment, the dollar n & # 's He did not know how to stand out from his peers.
On Friday, the euro hit a new high of one month and grew more than 13% over the year, while the pound was also up, with nine percent moreover since January. Most high-yielding currencies, including the Australian dollar, the South Korean won and the Indonesian rupiah, were up on Friday. "Whether it's the end-of-the-month flow or simply that there are no catalysts to buy dollars at the moment when traders can grab them does not matter" Greg McKenna, chief market strategist at AxiTrader.
"What matters is that for months the dollar has failed to capitalize on its improved economic outlook, the Fed's tightening plans and the reality that … there is a clear political and temporal divergence between the Fed and other central banks. "
In the stock trade thinned by the holidays, Hong Kong rose 0.2% and Shanghai finished 0.3% higher.