WATCH THE VIDEO HERE This optimism was fueled by the ex-president’s victory in crucial swing states, which are essential for securing the White House. Naijaonpoint reports that despite the US election being closely contested, Trump, a Republican candidate, appeared to be outperforming his Democratic opponent, Vice President Kamala Harris, as the election results were tallied. Both candidates had managed to secure victories in states that were considered safe, but there were signs that the business magnate was gaining an advantage, which contributed to the so-called “Trump Trade.” Although the outcome in several key swing states remained uncertain, Trump emerged victorious in Georgia and North Carolina, with the rest of the states still undecided. Such a victory was anticipated to pave the way for new tax reductions, increased tariffs, and a rise in inflation. Naijaonpoint understands that reports of Trump securing control of the Senate further enhanced the prospects for comprehensive tax cuts, additional tariffs, and deregulation—all of which were viewed as beneficial for the U.S. dollar. The dollar experienced a 1.5 percent increase, reaching its highest point since July at 154.33 yen. It also saw a rise of over one percent against the euro and more than three percent against the Mexican peso. Bitcoin saw a surge of nearly $6,000, breaking through the record at $75,330.88, surpassing its previous high of $73,797.98 in March. Trump has expressed a commitment to transforming the United States into the global capital for Bitcoin and cryptocurrency and has proposed the appointment of tech billionaire Elon Musk to oversee a comprehensive audit of government expenditures. “The price of Bitcoin has closely followed Trump’s position in the polls and on betting markets,” said analyst Russ Mould from AJ Bell ahead of Tuesday’s US election. “Investors are potentially taking the view that a Republican victory would lead to a surge in demand for the digital currency,” he added. Analysts stated that a clean sweep of Congress and the White House by Trump and the Republicans would likely boost the dollar and treasury yields, due to his plans to cut taxes and impose tariffs on imports. Republican control of the Senate and House “could bring sweeping spending or tax policy shifts. However, congressional gridlock could suppress volatility,” said Stephen Innes of SPI Asset Management. Meanwhile, Economist and Esho Capital founder Peter Esho also noted that “The markets are scrambling to figure out what happens next, but for the time being, the market is pricing in a higher growth and higher inflation outlook.” Such a scenario could challenge Federal Reserve Chair Jerome Powell, who is currently striving to manage inflation, particularly as Trump’s proposals are viewed as potentially inflationary. Naijaonpoint reports that the US election coincides with the central bank’s upcoming policy announcement, anticipated on Thursday, amid speculation regarding a 25 basis point interest rate cut following a 50 basis point reduction in September. The dollar’s rise against the yen contributed to a more than three percent increase in Tokyo’s stock market at one point, driven by gains in exporting companies, while markets in Shanghai, Sydney, Singapore, Taipei, Mumbai, and Bangkok also experienced upward movement. Conversely, losses were observed in Seoul, Wellington, Manila, and Jakarta. Hong Kong experienced a significant drop, plummeting nearly two percent at one point, due to concerns regarding the implications of a Trump presidency on China’s economy and the dynamics between Beijing and Washington. Traders were buoyed by a strong performance on Wall Street, where all three major indices rose by over one percent. While the election outcome is being closely monitored worldwide, it holds particular significance for China, especially after Trump pledged to intensify the trade conflict with the economic powerhouse by imposing substantial tariffs on Chinese imports. The election occurs concurrently with a crucial meeting among Chinese leaders to deliberate on a stimulus package aimed at revitalizing growth and addressing the challenges faced by the struggling property sector, which is currently grappling with a severe debt crisis. Below Are Some Key Dollar Figures Around 0620 GMT:
The value of the United States Dollar experienced a significant surge, while Bitcoin also achieved a record high on Wednesday as investors positioned themselves for a potential triumph for Donald Trump.
Dollar Appreciation Against Other Currencies
Dollar, Bitcoin Soars In Value Amidst Expected Trump Win In US Election
