The US dollar has been gaining strength since conclusion of the elections and this is exerting pressure on emerging market currencies.
Qi Gao, FX Strategist at Scotiabank tells CNBC-TV18 this is due to Trump's pro-growth stance. Trump has promised to accelerate fiscal spending on infrastructure which has raised inflation expectations and this means possibility of rate hikes, Gao says.
Gao expects Asian currencies to remain under some strain ahead of the Federal Open Market Committee (FOMC) meeting in December. Dollar Index, he feels, will face some resistance around the USD 100-level.
However, he expects the Indian rupee to outperform regional currencies because of its strong fundamentals.
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