Fears of ‘taper tantrum’ recede amid protectionist policies

Weakening dollar: Textbook economics theory would suggest that a rise in interest rates would be accompanied by the strengthening of the currency. But it is not happening as far as the US dollar is concerned, this time around. — Reuters

THE protectionist policies adopted by the United States contribute to the weakening of the dollar, which is at the lowest level in four years.

It has also helped dissipate fears of the US dollar flowing out of emerging markets such as Malaysia, when the world’s biggest economy raises interest rates, which has been kept low for the past 10 years.