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Dollar falls broadly after Obama heads for re-election
reuters.com ^ | November 7, 201

Posted on 11/06/2012 9:50:45 PM PST by Tailgunner Joe

The dollar fell broadly in Asia on Wednesday as media projected U.S. President Barack Obama won a closely-fought election, ensuring that the Federal Reserve's quantitative easing will be in place.

The Democrats look set to retain a majority in the Senate while the Republicans also appear to be solidifying their control of the House of Representatives, keeping intact the risk of policy paralysis over the looming "fiscal cliff" -- a sharp fiscal tightening due to start next year.

"The Fed's quantitative easing is essentially a policy to cheapen the dollar. Republicans have been criticising the policy but it seems like that policy is likely to stay," said Yunosuke Ikeda, senior forex strategist at Nomura Securities.

The dollar fell to as low as 79.81 yen, nearly a full yen below its four-month high of 80.68 yen hit last week, before bouncing back slightly to 80.14 yen, still down 0.3 percent on the day.

An immediate support is seen at 79.275 yen, a low hit on October 30 right after the Bank of Japan's easing.

The dollar's drop came as the 10-year U.S. Treasuries yield dropped seven basis points to as low as 1.68 percent.

On top of Obama's support for quantitative easing, which Romney and many Republicans are opposed as a dangerous intervention that could stoke inflation, Obama's tougher stance on financial regulations is viewed as positive for bonds and negative for stocks.

"After the election, the market will likely shift its focus to the fiscal cliff. It's not clear what Obama can achieve (to reduce the impact of the fiscal cliff)," said Junya Tanase, chief FX strategist at JPMorgan Chase.

About $600 billion in government spending cuts and higher taxes will kick in early next year, unless U.S. lawmakers take steps to mitigate their impact.

(Excerpt) Read more at uk.reuters.com ...


TOPICS: Business/Economy
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1 posted on 11/06/2012 9:50:48 PM PST by Tailgunner Joe
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To: Tailgunner Joe

Von Thronstahl-The Age of Decay and Democracy

2 posted on 11/06/2012 9:53:24 PM PST by Sir Francis Dashwood ("Arjuna, why have you have dropped your bow???")
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To: Tailgunner Joe

so it begins


3 posted on 11/06/2012 9:53:36 PM PST by GeronL (http://asspos.blogspot.com)
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To: Tailgunner Joe

I will not give a rat’s azz when the rioting begins ala Greece here. I will however be locked and loaded.


4 posted on 11/06/2012 9:54:35 PM PST by 1scrappymom (No, I am not a Republican. I am a CONSERVATIVE.)
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To: Tailgunner Joe

On the bright side, this will make our products cheaper for other countries to buy increasing our exports and make it more expensive to buy overseas goods.


5 posted on 11/06/2012 9:55:08 PM PST by jackmercer
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To: 1scrappymom

yup. Just like “The Walking Dead”, aim for the head.


6 posted on 11/06/2012 9:56:04 PM PST by max americana (Make the world a better place by punching a liberal in the face)
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To: Tailgunner Joe

I hope America is happy with all this aftermath. A stupid America is a happy America. We can die happy.


7 posted on 11/06/2012 9:56:22 PM PST by oyez ( .Affordable Care is neither affordable nor care.)
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To: oyez

oyez~:” I hope America is happy with all this aftermath. “

The economy is in the tank
The stock market is going into the tank
Your money isn’t worth ‘shinola’
and the country is going down the flusher
and the world reserve is going to be the ‘yaun’

..but at least you have a new tax to cover health care !
(if you can find it !)


8 posted on 11/06/2012 10:01:56 PM PST by Tilted Irish Kilt (God created Whiskey ( the waters of life) so that the Irish wouldn't take ove the world !)
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To: jackmercer

That sounds like a banana republic.


9 posted on 11/06/2012 10:02:39 PM PST by bronxville (Margaret Sanger - “We do not want word to go out that we want to exterminate the Negro population,)
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To: Tailgunner Joe
I think I will swap my dollars for shekels while they still are worth something.

10 posted on 11/06/2012 10:03:25 PM PST by Bobalu (It is not obama we are fighting, it is the media.)
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To: Tailgunner Joe

Joyful news to the ears of obama voters.


11 posted on 11/06/2012 10:03:25 PM PST by chessplayer
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To: Tailgunner Joe

Beginning of economic collapse. We have moral collapse. Now we suffer the consequences. The rule of law is next.


12 posted on 11/06/2012 10:04:29 PM PST by garjog (Heroes Died. Obama Lied.)
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To: Tilted Irish Kilt

I just can’t believe that the country will settle for 4 more years of leading from behind...

Ah well , Socialism is generally goood for the ‘elite’
until they are no longer useful.
Prepare the Gulags


13 posted on 11/06/2012 10:04:53 PM PST by Tilted Irish Kilt (God created Whiskey ( the waters of life) so that the Irish wouldn't take ove the world !)
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To: Tilted Irish Kilt
"but at least you have a new tax to cover health care ! (if you can find it !)"

I'd suggest being REAL nice to your dog's vet.

14 posted on 11/06/2012 10:05:40 PM PST by Paladin2 (.)
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To: Tailgunner Joe

Sucks to be China...


15 posted on 11/06/2012 10:06:05 PM PST by null and void (Day 1386 of the Obama hostage crisis - Barack Hussein Obama an enemy BOTH foreign AND domestic)
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To: Tailgunner Joe

I will be watching the Philippine peso.
I cashed in $1000 yesterday. It was pretty low then. (41.10)
It has yet to show a move due to the election.
I have to keep my fingers crossed.


16 posted on 11/06/2012 10:07:15 PM PST by AlexW
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To: Tailgunner Joe
I don't think the glue will hold another four years.
So, are we looking at inflation?
17 posted on 11/06/2012 10:07:24 PM PST by MaxMax
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To: jackmercer

Right. The flip side of that scenario is that American products will be made in heavily automated plants with very few employees anyway.


18 posted on 11/06/2012 10:09:31 PM PST by Alberta's Child ("If you touch my junk, I'm gonna have you arrested.")
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To: Tailgunner Joe

expect gold to jump over $2200 shortly ... 30% adjustment

asians know the US will just print more money...


19 posted on 11/06/2012 10:13:32 PM PST by sten (fighting tyranny never goes out of style)
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To: AlexW
I would have bought another $10-20k of silver before the election, but I believed Romney would win. Just could not believe that such a huge majority of Americans are so stupid.

At least I learned something.

20 posted on 11/06/2012 10:16:19 PM PST by tdscpa
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