The US dollar and global markets saw a surge as Donald Trump gained a significant lead over Kamala Harris in the 2024 presidential election, winning two of seven swing states and leading in the remaining five.
The prospect of a Trump victory has sparked enthusiasm among traders, anticipating potential tax cuts and tariffs that could benefit certain economic sectors.
The dollar strengthened to 84.22 against the Indian Rupee, 154.33 against the Yen (its highest since July), and rose over one percent against the Euro and more than three percent against the Mexican Peso. Bitcoin also reached a record high, climbing nearly $6,000 to hit $75,330.88. Trump has pledged to position the US as the “cryptocurrency capital of the world” if elected, and suggested appointing Elon Musk to lead a broad audit of government spending.
This election outcome comes ahead of the Federal Reserve’s anticipated policy decision, with analysts expecting a 25-basis-point cut in lending rates. Wall Street futures responded positively, with the S&P 500 and Nasdaq both rising by over one percent.
In Asia, US stock futures rallied on news of Trump’s substantial lead. European markets, however, were less optimistic due to concerns that a Trump victory might heighten trade tensions, impacting exports from Europe. The EUROSTOXX 50 fell by 0.61%, the DAX dropped 0.55%, and the FTSE remained stable.
Asian shares showed mixed responses; Japan’s Nikkei climbed 2.4%, while MSCI’s Asia-Pacific index eased by 0.68%. In currency trading, the dollar index rose by 1.6%, marking its biggest daily increase since early 2023, while the Euro fell to 1.0757.
