Asia Is About to Face a Significant Dollar Stress Test
A perfect storm of macro and market forces could generate a dollar crunch next year, Deutsche Bank AG analysts warn.
What's Driving the Dollar Higher?
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For Asian markets, 2017 could be the year of the dollar crunch.
Foreign portfolio flows have taken a sharp downturn since Donald Trump's election victory, with $15 billion fleeing Asian bonds and stocks this month alone — close to 30 percent of year-to-date inflows to the region, according to Deutsche Bank AG — as a strengthening greenback and a bevy of protectionist policies from the president-elect darken the growth prospects for emerging markets.