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Stock markets cheer U.S. rate rise
Quote:
LONDON (Reuters) - World stock markets jumped on Thursday as investors chose to take the first hike U.S. interest rates since 2006 as a mark of confidence in the world's largest economy, also lifting the dollar but piling on the pain for oil prices.
China allowed its currency CNY=CFXS slip for a 10th straight session to hit its lowest since June 2011. The steady decline puts pressure on other Asian currencies to depreciate to stay competitive.
he dollar added 0.9 percent to 98.794 against a basket of major currencies .DXY, and looked set for another test of stiff resistance around the 100.00 mark.
The euro dropped to $1.0860 EUR=, having fallen as low as $1.0832 from $1.1000 in the wake of the Fed's statement. The dollar advanced to 122.40 yen JPY=.
A stronger dollar also makes it more expensive for EM countries and firms to pay off dollar debt, and it comes alongside persistent worries about China's economy and the impact of the slump in commodity prices on producer states.
"We should see a resumption of the dollar's longer-term uptrend as 2016 progresses."
More at: http://uk.reuters.com/article/uk-glo...0TX01F20151217
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