Dollar too strong for Trump

Silver ended Rs 100 higher at Rs 41,400 per kg on Tuesday, translating into a gain of 5.34 percent based on its December 31 closing of Rs 39,300 per kg.

Rapid gains in the dollar would be a key risk to US corporate earnings.

A commentary Tuesday by Scotiabank’s foreign exchange team said it wasn’t clear whether Trump was saying the US dollar was too high specifically against China’s yuan or currencies in general, but investors reacted anyway. The American currency’s notable slide was sparked by a comment from the USA president-elect. “It’s true there are no trading cues to prompt the dollar buying”.

The dollar surged at the end of past year on the back of expectations of stimulus from the new administration that would boost US economic growth and feed demand for the dollar. US consumer prices rose in December as households paid more for gasoline and rental accommodation, leading to the largest year-on-year increase in 2-1/2 years.

“The market is taking a reality check from Trump euphoria, equity markets are moving sideways, the dollar has steadied and bond yields are down, allowing gold to recover”, Menke said.

But Trump’s latest comments signal the new administration prefers a weaker dollar to spur trade and bring jobs back to the USA, a policy that is at odds with fiscal-stimulus proposals that would tend to prop up the currency, according to Woo. In a video released online in late November, Trump declared his intention to remove the USA from the Trans-Pacific Partnership trade deal. Palladium added 0.9 percent at $750.38. Top line growth clocked in at 17% over past year.

Earlier this month, close to $25bn was shaved off the value of the S&P 500’s top nine pharmaceutical companies in a matter of minutes, the after President-elect accused them of “getting away with murder”. Platinum prices slipped by 0.5 per cent to $US978, while palladium fell 0.7 per cent to $US744.

Investors’ next focus is on US Federal Reserve chair Janet Yellen’s speech later on Wednesday. Then it started sliding around the start of the new year.

Brent crude ended the session at $53.92 per barrel, down $1.55 or 2.79 percent, while US crude settled at $51.08, down $1.40, or 2.67 percent.

The Dow Jones Industrial Average (DJIA) is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange (NYSE) and the NASDAQ.

Winners and Losers: Wal-Mart Stores Inc soared 2 percent after announcing it would create about 10,000 jobs in the U.S. Ahead of the settlement, both contracts sank to their lowest since January 11.