Trump's Election Lead Fuels Dollar Rally and Bitcoin’s Rise

 

The U.S. dollar rallied broadly on Wednesday, while bitcoin saw a nearly 3% jump, as early results in the tight U.S. presidential race stirred a return to "Trump trades." In the critical battleground of Georgia, Republican Donald Trump currently leads Democrat Kamala Harris with over half of the votes counted, as reported by Edison Research.

Despite these early indications, the final outcome remains uncertain, and it may take hours or even days before a result is confirmed nationwide.

As of 0148 GMT, the dollar index, which gauges the dollar against six major currencies including the euro and yen, rose by 0.75% to reach 104.14. Analysts attribute the dollar's strength to Trump’s policies on tariffs and immigration, which are viewed as inflationary.

"The market appears to be responding to Trump's early lead in Georgia," commented James Kniveton, a senior forex dealer at Convera. "However, with votes still coming in from urban areas, the race remains very close."

The U.S. dollar regained substantial ground, leading to a pullback in risk-sensitive currencies, such as the Australian dollar, which fell by 0.65% to $0.6594 as Trump gained early wins.

Meanwhile, the euro slid 0.77% to $1.0844, and the dollar increased by 0.85% against the yen, reaching 152.85 yen. Bitcoin also surged, with Trump perceived as more favorable toward cryptocurrencies compared to Harris.

The dollar also saw gains against the Mexican peso, climbing 1.4% to 20.3850, and rose 0.52% in offshore yuan trading to 7.1340. Mexico and China are among the countries potentially most affected by Trump's tariff policies.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Paraphrasing text from "Reuters all rights reserved by the original author.