– This is the script of CNBC's news report for China's CCTV on November 25, Friday.
The dollar soared to a over 13-year high against a basket of major currencies Wednesday, bolstered by upbeat U.S. data and coupled with longer-term expectations that a stimulus plan from President-elect Donald Trump will rev up the U.S. economy and possibly force an earlier cycle of interest rate increases from the Federal Reserve.
Minutes from the Federal Reserve's November meeting and better-than-expected data confirmed expectations that U.S. interest rates are set to rise next month.
Meanswhile, The data showed new orders for U.S. manufactured capital goods rebounded last month on rising demand for machinery and equipment, while consumer sentiment rose this month.
A report on Wednesday from the Commerce Department said demand for long-lasting manufactured goods rose in October at the fastest pace in a year, a sign the U.S. factory sector has begun to stabilize.
A gauge of U.S. consumer sentiment surged in November, signaling rising confidence in the economy, as the presidential campaign ended.
U.S. dollar strength has gained momentum with the rise in Treasury yields since President-elect Donald Trump won the U.S. election.
Trump boosted market expectations for economic growth by touting government spending and corporate tax cuts. The dollar index is up about 4 percent since the election, after erasing year-to-date gains beforehand.
Rocketing US bond yields have triggered a global stampede into US assets, draining the international system of dollar liquidity.
It is the exact opposite of what happened in the glory days of the emerging market boom when quantitative easing by the US Federal Reserve flooded the world with cheap dollar credit.
Stocks in Asia's emerging markets have been suffering, with capital outflows from stock markets of the Phillipines, India and Malaysia.
However, some market players are playing down the significance of the rising greenback, however.
Ben Pace, CIO at HPM Partners, said that "the dollar is strong for we think the right reasons ... I think people tend to overreact to the strong dollar.
It's the reason why it's strong that I think is important."
"We're actually somewhat bearish on the dollar," said David Lefkowitz, senior equity strategist at UBS Wealth Management Americas. "From our perspective, the dollar looks fairly expensive."
CNBC Qian Chen, reporting from Singapore.