2020 US Elections: Asian currencies to fall on a Trump victory
|Yohay Elam, an analyst at FXStreet, assesses how Asian currencies could perform on a Trump win in the next US Elections. The South Korean won and the Taiwan dollar would be the worst-hit currencies while the Chinese yuan would also weaken.
Key quotes
“Asian currencies may suffer if Trump is elected – amid prospects of further Chinese moves. The most vulnerable ones would be the South Korean Won and the Taiwan Dollar. Stock markets in both countries could also come under pressure.”
“The Chinese yuan may weaken – President Xi Jinping may feel freer to boost the country's exports, a model that has been working for years. China's stock market would continue its rise, owing to better prospects for Chinese firms.”
“US companies operating in China may come under increased pressure and the ever-elusive dream of operating freely in the country's huge market may fade further away. Firms less-reliant on the world's second-largest economy may fare better.”
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