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Marketmind: Don't doubt the dollar

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via Jamie McGyver

(Reuters) – Jamie McGeever’s take on Asian markets for the day ahead.

Reports of a falling dollar may be exaggerated, and if so, that would be bad news for Asia.

World stocks staged a strong rebound, bond yields and the dollar fell, and financial conditions eased markedly last month as investors bet the Fed was preparing for Prepare for the much-vaunted “steering.” This2022 MSCI World Index up % Starting in October was lower, while MSCI Asia ex-Japan rose % had their best month since May over the past four weeks, 25. Big Bank Start posting their 400 Prospects, Forex Analyst at HSBC and 2023200 Morgan Stanley (NYSE :1000 MS) are those who think that the dollar is peaking and will weaken next year.

But recent comments from Fed officials have been downright hawkish – even ex-“dovish” Daly like San Francisco Fed President Mary Daly – if the dollar recovers Its no surprise bounces to the end of the year.

This adds to the problems Asian markets and policymakers have faced throughout the year – historically low exchange rates, foreign exchange market intervention, rising inflationary pressures and Domestic interest rates rose into weak growth.

If the Fed is not as close to the end of its rate hike cycle as previously thought, neither are most Asian central banks. Of course, Asian powerhouses Japan and China are easing policy, and their currencies and reserves are taking a hit. That’s the background to the Bank of Korea’s meeting later this week. Except for one Reuters poll predicts %.

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