ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print
Currencies

Dollar win streak lifts Japan stocks, sinks emerging currencies

The flow of money into dollar assets comes at the expense of emerging market economies.

TOKYO -- The money pouring into dollar assets has lifted the greenback to historic highs and bolstered Japanese stocks, but concerns are growing that the trend could destabilize vulnerable emerging economies.

The U.S. currency has strengthened on hopes that President-elect Donald Trump will expand government spending to fulfill his promises to boost infrastructure development and other public investment. Growing inflation expectations have driven investor money from bonds to stocks. The U.S. long-term interest rate reached 2.36% at the end of last week, more than half a percentage point higher than before the presidential election Nov. 8. The Dow Jones Industrial Average stands near its all-time high.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more