Dollar soars, bitcoin hits record and stocks rally as Trump win seen

On Wednesday, the dollar surged around 1.5 per cent against the yen and the euro as traders weighed the potential budgetary implications of a Donald Trump victory in the U.S. presidential election.

At 0245 GMT, the greenback had climbed 1.51 per cent against the Japanese yen, reaching 153.89 yen, and gained 1.41 per cent to nearly 0.93 euros. Given Trump's budgetary policies, analysts suggest that a win for Trump could reduce the likelihood of aggressive interest rate cuts by the U.S. Federal Reserve.

Trump, facing off against Democratic Vice President Kamala Harris, has seen his margin widen in key battleground states like Florida, according to Yugo Tsuboi, chief strategist at Daiwa Securities. “The markets are starting to bet on a return of Trump,” Tsuboi told Bloomberg News.

As polls in the U.S. began to close, investors remained cautious but attentive to potential shifts, particularly in Congressional races. Analysts believe a Republican clean sweep, alongside Trump’s economic plans to cut taxes and impose tariffs, could further boost the dollar and drive up Treasury yields.