Fiscal cliff looms for Obama

Nov 7, 2012

Asians markets rise but dollar falls following Obama's win

Jewel Samad

President Obama is joined by his wife Michelle and daughters Sasha (centre) and Malia to salute party workers in Chicago early this morning. He said in his victory speech: "For the United States of America, the best is yet to come."

Asian markets recovered from early losses today following the news that President Barack Obama had won re-election. But the dollar fell against 15 of its 16 major peers, reports Bloomberg, and gold increased for the third day in a row. Obama will now have to turn his attention to the so-called ‘fiscal cliff’ of more than $600 billion in tax increases and spending cuts that take effect in 2013 unless Congress can reach a budget compromise. Among the cynics was Francis Lun, managing director of Lyncean Holdings in Hong Kong, told The Washington Post: “Nothing will change. We will have ultra-low interest rates, a $1 trillion deficit, and quantitative easing. Bernanke will keep his job as Fed chairman.”


Your smart start to 2016 – Get 6 free issues of The Week magazine.
One-Minute Read