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 ...
so it begins
I will not give a rat’s azz when the rioting begins ala Greece here. I will however be locked and loaded.
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.
yup. Just like “The Walking Dead”, aim for the head.
I hope America is happy with all this aftermath. A stupid America is a happy America. We can die happy.
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 !)
That sounds like a banana republic.
Joyful news to the ears of obama voters.
Beginning of economic collapse. We have moral collapse. Now we suffer the consequences. The rule of law is next.
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
I'd suggest being REAL nice to your dog's vet.
Sucks to be China...
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.
Right. The flip side of that scenario is that American products will be made in heavily automated plants with very few employees anyway.
expect gold to jump over $2200 shortly ... 30% adjustment
asians know the US will just print more money...
At least I learned something.
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