Fiscal cliff looms for Obama

Asians markets rise but dollar falls following Obama's win

LAST UPDATED AT 11:36 ON Wed 7 Nov 2012
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.”

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