Trump Trades Lift Dollar, Bitcoin Hits New Peak

AFP/APP

Hong Kong: The dollar surged, and bitcoin hit a record high on Wednesday, while equity markets advanced as traders anticipated a Donald Trump victory in the US presidential election, based on early results.

Though the race was close, early projections suggested Trump was performing better than Democratic opponent Kamala Harris. Both candidates won expected victories in safe states, but signs of Trump gaining ground fueled the “Trump Trade.”

Positive predictions for Trump’s party in Congressional races bolstered expectations of tax cuts, tariffs, and deregulation, benefiting the dollar.

The dollar rose 1.5 percent to 154.33 yen—its highest since July—and climbed over one percent against the euro and more than two percent against the Mexican peso.

Bitcoin surged almost $6,000, reaching a record $75,005.06, surpassing its previous peak of $73,797.98 in March. Trump had pledged to make the US “the world capital of bitcoin and cryptocurrencies” during his campaign.

Although swing state results remained uncertain, early polls indicated Trump was leading in Georgia, prompting traders to monitor updates closely.

“Georgia starting to glow red may have been the trigger,” noted Max Gokhman from Franklin Templeton Investment Solutions.

Congressional outcomes also played a role; a Republican sweep could boost the dollar and Treasury yields due to Trump’s plans for tax cuts and tariffs, potentially impacting Federal Reserve policies. The central bank is expected to announce a policy decision on Thursday, with anticipated rate cuts.

The dollar’s gains lifted Tokyo’s Nikkei by more than two percent, while other Asian markets like Shanghai, Sydney, and Seoul also rose. Hong Kong and Jakarta, however, saw declines. Wall Street indexes similarly climbed over one percent.

Globally, the election outcome carries implications, particularly for China, as Trump’s trade policy includes heavy tariffs on Chinese goods.

Key Figures Around 0300 GMT

Dollar/yen: UP at 154.23 yen from 151.60 yen on Tuesday

Euro/dollar: DOWN at $1.0750 from $1.0930

Pound/dollar: DOWN at $1.2900 from $1.3035

Euro/pound: DOWN at 83.40 from 83.82 pence

Tokyo – Nikkei 225: UP 2.3 percent at 39,341.44 (break)

Hong Kong – Hang Seng Index: DOWN 2.3 percent at 20,525.09

Shanghai – Composite: UP 0.1 percent at 3,390.64

West Texas Intermediate: DOWN 0.4 percent at $71.73 per barrel

Brent North Sea Crude: DOWN 0.4 percent at $75.21 per barrel

New York – Dow: UP 1.0 percent at 42,221.88 (close)

London – FTSE 100: DOWN 0.1 percent at 8,172.39 (close)