The US dollar has gained support from the notion that rising inflation is likely to support the Fed’s decision to raise interest rates sooner rather than later.
In addition to this, better than projected unemployment numbers also make the case for aggressive tapering stronger. Similarly, the value of the pound has also been rising as investors are expecting that the Bank of England will likely raise its interest rates in coming months as well.
Asian Pacific Markets
The fall in market sentiment in the United States, the biggest economy in the world, has also seeped into Asian Pacific markets, which are also looking for direction and assessing what global economic growth will look like in 2022.
As of 11.49 p.m. EST, the Nikkei dropped 0.90% and the Shanghai index fell 0.08%. The Hang Seng, in Hong Kong, surged 0.37%. The ASX 200 index slumped 0.74%, and the Seoul KOSPI rose 0.02%.