In addition, expectations of higher interest rates during Trump’s term have buoyed the dollar against other currencies.
“The PBOC is caught between a rock and a hard place in the face of a strong U.S. dollar and huge waves of capital outflows,” said Stephen Innes, senior trader at OANDA.
“I suspect if, or when, any global trade policies are implemented, they would be executed in a very controlled fashion to have limited impact on the global economy