SINGAPORE (Nov 14): After the dust has settled on a contentious US presidential election, and Donald Trump has become the President-elect, Maybank Kim Eng analysts Sadiq Currimbhoy and Willie Chan are now “negative” on the US dollar, as the US Bureau of Economic Analysis showed that the US had a net international investment position of negative US$8 trillion ($11.3 trillion), up from negative US$2 trillion in 2008.

The increase in its net international investment position has reduced the USD’s credit worthiness, said the pair. The bond market is also likely to be affected.

“While the USD may initially rally against emerging-market currencies, its status as a safe haven against other developed-market currencies is at risk,” they said, recommending investors look at precious metals like gold, instead.

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