SINGAPORE (Nov 18): When news first broke that Donald Trump would be the next president of the US, the US dollar (USD) plummeted against other major currencies such as the euro (EUR) and Japanese yen (JPY).

But after Trump stepped out of character and gave a surprisingly conciliatory victory speech, promising domestic growth and jobs as his administration begins the “urgent task” of rebuilding the nation, sentiment in global markets turned sharply. The USD rebounded against other major currencies, while US stocks took off and the Treasury bond yield curve steepened sharply.

Now, the rising USD is weighing on other EM currencies, including the South African rand, Brazilian real and Mexican peso (MXN), which have all fallen by more than 6% since Nov 7.

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