A news photographer take photos of monitors displaying the Japanese yen's exchange rate against British po ( Image credit: Reuters )

Dollar hits 13-1/2 year high, US bond yields gain on Trump stimulus bets

Dollar surges against a basket of major currencies, as US debt yields 1-years highs

Tokyo: The US dollar sprinted to a more than 13-1/2 year high against a basket of major currencies on Friday and US debt yields hit near one-year highs on expectations that President-elect Donald Trump's policies will boost the US economy.

But the post-election shift in expectations has left many emerging market currencies and assets vulnerable if investors rotate more funds back to the United States.

European shares were expected to open marginally higher, with spread-betters looking to rise of 0.3 percent in Germany's DAX  and a flat opening for Britain's FTSE.

Concerns about the health of Italy's banks and the political repercussions of a referendum next month are rearing their head, after the spread of the Italian 10-year debt yield over German paper had risen to a high last seen in August 2014.

In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan dropped 0.4 percent to hover just...Read more...

Source: gulfnews.com