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US expats in Dubai fear Trump victory may harm financial markets
| Published: | 8 Nov at 6 PM |
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As Election Day dawns, US expat investors living in the UAE worry about the effect on financial markets and the dollar of a Trump victory.
Anxiety in Dubai’s expat community over the possible effects of a Trump presidency on the US dollar is ramping up now that the election itself is underway. The UAE dirham is pegged to the dollar, making currency instability likely if the unthinkable becomes a reality.
Other are sceptical, claiming the dollar is more likely to strengthen than fall due to the prospect of another US Federal Reserve interest rate hike. However, financiers in general believe the election results, whichever way they go, will have personal financial ramifications for US expats working in the UAE.
The reason behind this thinking is the fact that, whoever wins today’s election, individual investment plans are bound to be affected. For example, anxiety about a Trump win has already started a trend against the dollar, with investors and their advisors backing off from dollar investments.
As a result, assets priced in British pounds are gaining popularity, with the currency itself gaining ground against the dollar at the end of last week. China’s present volatility is another spur for taking on cash investments, popular since the beginning of this year with UAE expat investors.
Market nervousness has been on the increase over the past few days as the gap between Clinton and Trump has narrowed. Stocks as well as the dollar have weakened, with banks continuing to keep a close eye on political developments. Should Trump win, the markets are expected to react strongly in the short term.
However, this volatility isn’t expected to last long, with a number of experts believing stocks may do better than under Clinton, as Trump is expected to have a tough time getting anything done by government action. As regards the shocking drop in the value of the pound sterling, it’s anyone’s guess as to its future movement.
Anxiety in Dubai’s expat community over the possible effects of a Trump presidency on the US dollar is ramping up now that the election itself is underway. The UAE dirham is pegged to the dollar, making currency instability likely if the unthinkable becomes a reality.
Other are sceptical, claiming the dollar is more likely to strengthen than fall due to the prospect of another US Federal Reserve interest rate hike. However, financiers in general believe the election results, whichever way they go, will have personal financial ramifications for US expats working in the UAE.
The reason behind this thinking is the fact that, whoever wins today’s election, individual investment plans are bound to be affected. For example, anxiety about a Trump win has already started a trend against the dollar, with investors and their advisors backing off from dollar investments.
As a result, assets priced in British pounds are gaining popularity, with the currency itself gaining ground against the dollar at the end of last week. China’s present volatility is another spur for taking on cash investments, popular since the beginning of this year with UAE expat investors.
Market nervousness has been on the increase over the past few days as the gap between Clinton and Trump has narrowed. Stocks as well as the dollar have weakened, with banks continuing to keep a close eye on political developments. Should Trump win, the markets are expected to react strongly in the short term.
However, this volatility isn’t expected to last long, with a number of experts believing stocks may do better than under Clinton, as Trump is expected to have a tough time getting anything done by government action. As regards the shocking drop in the value of the pound sterling, it’s anyone’s guess as to its future movement.
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