The dollar and Bitcoin surged in value overnight as President-Elect Donald Trump’s victory in the 2024 election became clear.
As Trump won key states and appeared to be on the path to election victory in the US presidential election, the US dollar surged by 1.2 percent against the British pound.
The dollar was up 1.8 percent against the euro, which is worth $1.072, and jumped 1.7% versus the Japanese yen.
Against a basket of major currencies, the dollar index surged 1.6pc in the biggest daily rise since early 2023.
Investors bets paid off after they accurately predicted that Trump would defeat failed Democrat candidate Kamala Harris and return to the White House.
As it became clear that Trump had an advantage in Pennsylvania, Michigan, and Wisconsin, Bitcoin climbed as much as 8.5pc to reach a record high of $75,060.
Trump has been dubbed the “Crypto President” and has touted pro-cryptocurrency policies such as creating a Bitcoin strategic reserve.
U.S. stock markets are extending their huge gains in premarket trading after Trump declared election victory in the early hours of Wednesday morning.
The S&P 500 was up 2pc while the Nasdaq gained 1.7pc ahead of the opening bell, while the Dow Jones Industrial Average was up 2.2pc.
In the UK, the FTSE 100 soared higher after Trump declared he had won a “magnificent victory for the American people” in the presidential election.
After Trump took the crucial swing states of North Carolina, Pennsylvania, and Georgia, the UK’s blue-chip stock index was 1.3pc higher while the midcap FTSE 250 jumped 1.8pc.
Stock markets surged across Europe, with the Cac 40 in Paris up 1.7pc and the Dax in Frankfurt rising 1.2pc after Trump told his supporters in Florida that “America has given us an unprecedented and powerful mandate”.
Global financial markets have reacted “aggressively” to Trump’s victory as he confirmed that he would be “putting America first.”
He said: “We have to fix it because together we can truly make America great again for all Americans.”
Saxo’s head of commodity strategy Ole Hansen said:
“This outcome is close to forming a ‘Trump 2.0’ or a ‘Red Sweep,’ where the Republicans could control both the White House and Congress, giving them substantial leverage in upcoming high-stakes tax and spending negotiations.
“So far, the results have driven the dollar to a one-year high, with the currencies suffering the biggest setbacks being the Mexican peso, the Japanese yen, and the euro, the two former affected by the potential divergence between the rate path of the FOMC and other major central banks.”
Trump said early on that there was “no other path to victory” for Harris after the president-elect won the swing state of Pennsylvania.
The son-to-be 47th president also secured a historic popular vote win.
He said winning the popular vote was “very nice” as he addressed a rally of supporters at West Palm Beach, Florida.
“It’s much easier doing what the networks did – or whoever called it – because there was no other path,” Trump said.
“There was no other path to victory.
“We also have won the popular vote. That was great.”
Peter Esho of Esho Capital said:
“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.”
