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

Bitcoin piled almost $6,000 higher to a record $75,005.06, topping its previous peak of $73,797.98 hit in March

Published: Wed 6 Nov 2024, 7:04 AM

Updated: Wed 6 Nov 2024, 10:30 AM

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  • AFP

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Photo: AFP

Photo: AFP

[Editor's Note: Click here to follow the US election results live with Khaleej Times.]

The dollar surged and bitcoin hit a record high Wednesday while equity markets advanced as traders bet on a victory for Donald Trump as early results for the US presidential election rolled in.


While polls have shown the race for the White House on a knife-edge, the Republican appeared to be faring better than his Democratic opponent and Vice President Kamala Harris in early projections.

Both candidates have picked up expected wins in safe states, but indications that the business tycoon was edging it boosted the so-called Trump Trade.

Signs that the former president's party was notching up better results in Congressional races boosted the prospect of sweeping tax cuts, more tariffs and deregulation – seen as a boost for the greenback.

The dollar jumped 1.5 per cent to 154.33 yen, its highest since July, while it was also up more than one percent against the euro and more than two percent against the Mexican peso.

Bitcoin piled almost $6,000 higher to a record $75,005.06, topping its previous peak of $73,797.98 hit in March.

Trump pledged during the campaign to make the United States "the world capital of bitcoin and cryptocurrencies".

While the key swing states were too close to project, early tallies suggested Trump was ahead in Georgia, while traders were keeping a close eye on other incoming results.

"Georgia starting to glow red may have been the trigger," said Max Gokhman, at Franklin Templeton Investment Solutions, referring to early exit polls.

"If I had to pick one asset as a barometer of Trump sentiment it would be bitcoin."

Analysts said attention was also on Congressional races, adding that a clean sweep for Trump and Republicans would likely boost the dollar and Treasury yields owing to his plans to cut taxes and impose tariffs on imports.

Control of the Senate and House of Republicans "could bring sweeping spending or tax policy shifts. Still, congressional gridlock could be the ultimate volatility suppressor", said SPI Asset Management's Stephen Innes.

Such an outcome for the Republicans could provide a headache for Federal Reserve boss Jerome Powell as he continues his battle to bring inflation to heel, with Trump's plans considered inflationary.

The election comes as the central bank prepares to deliver its latest policy decision Thursday amid expectations it will cut interest rates 25 basis points, having lowered them 50 points in September.

The dollar's surge against the yen rallied stocks more than two percent in Tokyo thanks to gains in exporters, and while Shanghai, Sydney, Seoul, Singapore, Wellington, Manila, and Taipei also rose, there were losses in Hong Kong and Jakarta.

The advances came after all three main indexes on Wall Street climbed more than one percent.

While the result of the election is being closely followed globally, it is of real interest in China after Trump vowed to ratchet up a trade battle with the economic titan by imposing massive tariffs on goods from the country.

The vote comes as Chinese leaders hold a key meeting to hammer out a package of stimulus measures aimed at kickstarting growth and providing support to the colossal property sector, which is mired in a painful debt crisis.

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