Stock Chart Icon Stock chart iconPart of the reason behind the U.S. dollar strength is the policies Trump had promised on the campaign trail, including tariffs and tax cuts, which are seen by economists to be inflationary.
James Ooi, market strategist at online broker Tiger Brokers told CNBC that a strong U.S. dollar would make it more difficult for Asian central banks to manage their economies.
A stronger U.S. dollar is likely "to pose challenges for Asian central banks by increasing inflationary pressures through higher import costs and straining their [central banks'] foreign exchange reserves if they attempt to support their currencies through interventions," Ooi told CNBC over email.
Stock Chart Icon Stock chart iconChina's onshore yuan hit a 16-month low of 7.3361 on Jan. 7, pressured by rising U.S. Treasury yields and a stronger dollar.
Stock Chart Icon Stock chart icon
Persons:
Richard A, Brooks, Donald Trump, Trump, Donald Trump's, James Ooi, Ooi, Lorraine Tan, Tan, Ken Peng, Peng, BOJ, Morningstar
Organizations:
Afp, Getty, U.S ., South Korean, greenback, U.S, Bank of Japan, Reserve Bank of India, Tiger Brokers, CNBC, Treasury, Asia, Morningstar, People's Bank of, Asia Pacific, Citi Wealth
Locations:
Tokyo, Asia, People's Bank of China, outflows, China, South Korea, Taiwan, Southeast Asia, Japan