Currency swings overnight weighed on Asian equities Monday, following President-elect Donald Trump’s jolting comments that the dollar is too strong, prompting the greenback to fall to a one-month low.
Trump made his comment about that the dollar was “too strong” which makes it hard for American companies to compete with China, in an interview with the Wall Street Journal .
The U. S. policy has been for a strong dollar since the Clinton administration’s Treasury Secretary Robert Rubin. Fed Chair Janet Yellen is dues to speak later on Wednesday in the U. S. on monetary policy goals.
Meanwhile, sterling saw its biggest one-day gain against the greenback overnight since October 2008 after British Prime Minister Theresa May announced her plan for a clean break between the U. K. and the European Union .
The pound soared against the softening dollar, to trade at $1.2355, earlier trading as high as $1.2415.
Down Under, the ASX 200 fell 0.55 percent in early trade, weighed heavily by its heavily-weighted financials sub-index.
Japan’s Nikkei 225 fell 0.39 percent as the dollar/yen falls below the 113 handle and as financial stocks weigh.
A stronger yen is generally seen as a negative for Japanese stocks as it impacts the competitiveness of Japanese exports and lessens profits earned overseas when repatriated.
