BUSINESS
The dollar stood near a 14-year peak, bond yields were highly elevated and Asian stocks struggled for traction on Friday as global markets continued adjusting to the idea of higher US interest rates.
The dollar stood near a 14-year peak, bond yields were highly elevated and Asian stocks struggled for traction on Friday as global markets continued adjusting to the idea of higher US interest rates.
In a move that reverberated across the financial markets, the Fed on Wednesday raised rates for the first time in a year and projected three more increases in 2017, up from the two projected in September.
The dollar index against other major currencies last stood at 103.10 after storming to 103.56 overnight, its highest since December 2002.
The euro was steady at $1.0427 after hitting $1.0366 overnight, its lowest since January 2003. The dollar was little changed at 118.250 yen after surging to a 10-month high of 118.660 the previous day.
The prospect of the Fed tightening monetary policy next year faster than earlier expected drove the benchmark US Treasury 10-year yield to highs unseen in two years.
"World markets continue to adjust to an outlook for higher US interest rates and increased inflation risk boosted by major US tax cuts," wrote Ric Spooner, chief market analyst at CMC Markets.
Tracking the rise in the US 10-year note's yield, Japan's 10-year government bond yield brushed an 11-month peak of 0.10%. That gain is expected to test the Bank of Japan's resolve to keep the yield around zero%.
Asian stocks were tepid, reflecting the differing fortunes for developed and emerging market economies faced with higher US interest rates.
"Emerging market countries have been hit the hardest by capital leaving in search of higher yields and return along with the growing cost of paying back dollar denominated debt," wrote Kathy Lien, managing director of FX strategy at BK Asset Management.
MSCI's broadest index of Asia-Pacific shares outside Japan crawled up 0.1% after falling 1.8% on Thursday. The broader emerging market stock index was down 1.6%.
Shanghai gained 0.1% after losing 0.7% the previous day, while Malaysian and Indonesian shares were a touch lower. South Korea's Kospi added 0.3%.
Japan's Nikkei climbed 0.7%, reaching a one-year high on a weaker yen and gains on Wall Street overnight. US shares rose on Thursday, brushing off the initial shock of a more hawkish Fed, led by shares of banks seen as beneficiaries of higher rates.
European stocks also gained on higher bank stocks, adding 1% on Thursday.
Emerging market currencies, hit after last month's US election win by Donald Trump raised the spectre of higher US rates, suffered a fresh blow from the Fed's latest move.
China on Friday set the yuan's midpoint at its weakest since 2008. Brazil's real fell as much as 2% overnight while the Indonesian rupiah and South Korean won saw their worst losses since Trump's win.
However, the Mexican peso strengthened after the country's central bank on Thursday countered the Fed's tightening with an aggressive rate hike.
In commodities, crude oil prices nudged higher as expectations that Kuwait would cut supplies by a larger than expected amount as part of a coordinated effort by oil producers to cut output offset negative pressures from a bullish dollar.
Brent crude gained 0.5% to $54.27 a barrel.
Precious metals did not fare as well against a stronger dollar. Spot gold and platinum hit 10-1/2-month lows of $1,122.35 and $885 an ounce overnight while silver dropped to its lowest since June.
Copper was down 0.1% at $5,729 a tonne. It had surged to a 17-month peak above $6,000 in November on speculation that a Donald Trump presidency would usher in fiscal stimulus and boost demand for metals.
'Full baarati vibes': Vietnamese man's epic 'nagin dance' steals show at Mumbai event
Tilak Varma credits THIS player for his century against South Africa, says 'He gave me...'
UPSC IFS Mains Admit Card 2024 to be released today at upsc.gov.in, check direct link to download
'Be prepared for...': Rupali Ganguly's stepdaughter Esha Verma REACTS to Rs 50 crore defamation case
Saudi, Iran: Cautious dance toward détente?
Anushka Sharma shares glimpse of Children’s Day special dish for daughter Vamika, son Akaay
Jaw-dropping! Man wraps massive green anaconda around his shoulders, internet says...
Donald Trump plans to end Russia-Ukraine war with THIS move, is expected to 'soon' appoint...
As pollution worsens in Delhi with AQI at 'severe' level, experts at COP29 urge India to...
SDM Assault Case: 60 people arrested in Rajasthan's Tonk
Veg thali cost more than non-veg thali in October, here's why
Land drug trafficking patterns in North-Eastern Region
Shillong Teer Result November 14, 2024: Know updates on lucky winning numbers
Mukesh Ambani's SUPERHIT offer for Jio users: Get unlimited validity for 84 days at just Rs...
Delhi air quality dips to 'severe' category as AQI nears dangerous...
Bigg Boss OTT-fame Bhojpuri actress Akshara Singh receives extortion threat
‘All I do is…’: After Arjun Kapoor confirms breakup with Malaika Arora, her cryptic video goes viral
World Diabetes Day 2024: Types, causes, precaution to avoid this chronic disease
Children's Day 2024: 50 WhatsApp wishes, messages, quotes to share on bal diwas
AUS vs PAK Live Streaming: When and where to watch Australia vs Pakistan 1st T20I live in India?
IND vs SA: Ramandeep Singh achieves THIS feat on T20I debut, joins Suryakumar Yadav in elite list
Meet man who used to earn just Rs 65, now heads Rs 23416 crore company, he is…
DNA TV Show: Arsh Dalla, Khalistani terrorist, arrested in Canada
Pushpa 2 first review: Rashmika Mandanna says Allu Arjun movie is 'freaking amazing'
SA vs IND: Tilak Varma scripts history with maiden century in 3rd T20I against South Africa
Delhi becomes world's most polluted city, overtakes Pakistan's Lahore, AQI recorded at...
Last Supermoon of 2024: Know when and how to watch it and other details here
Noida man arrested for creating ‘cannabis nursery’ inside house after being inspired by…
Actor John Krasinski named 'Sexiest Man Alive 2024' by People magazine
Meet outsider who worked in bank for eight years, became OTT star, will now star opposite Kajol in..
What is wedding invitation scam, how to protect yourself from it?
Arjun Tendulkar achieves rare feat which father Sachin Tendulkar never did in his 25-year career
Mukesh Ambani suffers Rs 12548 crore loss after buying Star from Disney, here's how
Ananya Panday sets Instagram on fire in sizzling bikini; BFF Suhana Khan, mom Bhavana Pandey react
International Trade Fair 2024 in Delhi from Nov 14: Know ticket price, timings, venue and more
SA vs IND: Varun Chakravarthy eyes Ravichandran Ashwin's all-time India record in T20Is
This govt company sold Rs 28880000000 shares of Ratan Tata firm, reduces its holding to...
Delhi Air Pollution: AQI hits 'Severe' category, record high in India today with 418
Tesla CEO Elon Musk spreading misinformation on X? His own AI model says...
Independent candidate slaps SDM outside booth during Rajasthan bypolls, watch video here
Viral video: Vistara crew bids emotional farewell on last flight before merger with Air India, watch
NBR Group Redefines Luxury Living With New Brand Identity, Tagline, and Logo
Resham Kamboj: Empowering Souls and Financial Freedom Through Spiritual Mentorship
NTPC Green Energy Rs 10000 crore IPO: Check subscription date, price band, lot size and more
India’s first hydrogen train to start trials soon: Check route, features, top speed to be…
Tejasvi Jaiswal's selfless sacrifice for brother Yashasvi Jaiswal rewarded with life's greatest gift
Mukesh Ambani, Isha Ambani to shut down these outlets under Reliance Retail due to...
Watch viral video: This MP stole Bill and ran away with intention to...