Dollar and bitcoin soar as Trump wins US election

The dollar began its ascent following early signs of a Republican victory in Georgia, strengthening further through the day.

The dollar index, which tracks the greenback against six major currencies including the euro and yen, rose 1.25% and reached a four-month high. (AP)

Donald Trump’s win in the US presidential election has sent shockwaves through financial markets, with the dollar surging, bitcoin hitting a record high, and renewable energy stocks dropping.

Trump secured the presidency on Wednesday morning after crossing the 270 electoral votes needed. Republicans also gained control of the Senate and House of Representatives, giving Trump broad authority to implement policies like tax cuts and tariffs on imports — both seen as positives for the US dollar.

The dollar began its ascent following early signs of a Republican victory in Georgia, strengthening further through the day. The dollar index, which tracks the greenback against six major currencies including the euro and yen, rose 1.25% and reached a four-month high.

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Analysts view Trump’s proposed tariffs and immigration policies as potentially inflationary, lending further support to the dollar’s rally.

Meanwhile, bitcoin surged by as much as 9% to a peak of $75,389, later settling around $74,500, with Trump perceived as more supportive of cryptocurrencies than Harris.

The FTSE 100, home to many international companies with significant dollar revenue, rose over 1% to reach 8,270.94. US stock markets are also expected to open on a positive note, although concerns linger that higher inflation could prompt the Federal Reserve to maintain rather than cut interest rates.

The Fed will hold a two-day meeting starting Wednesday, with an interest rate decision expected at 7 pm GMT on Thursday. The Bank of England is also anticipated to announce a rate cut on Thursday, ahead of the Fed’s decision.

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Tesla, led by Elon Musk, surged nearly 13%, benefiting from expectations that Trump will remove EV rebates and tax incentives. Meanwhile, competitors saw declines, and renewable energy stocks like First Solar and Enphase dropped sharply as Trump is expected to reverse Biden’s climate policies.

Trump Media & Technology Group, behind Truth Social, spiked 36% amid growing signs of Trump’s potential return to office.

(With Inputs from Associated Press)