Dollar Soars and Bitcoin Reaches New Heights Amid Trump's Re-election

The U.S. dollar experienced its biggest surge since 2020, rising against major currencies after Donald Trump was re-elected, with the Republicans gaining in the Senate. The dollar's ascent was fueled by expectations of Trump’s fiscal policies, which are considered inflationary, boosting treasury yields and the dollar.

The U.S. dollar surged to its highest point since March 2020 on Wednesday following the re-election of Donald Trump and significant Republican victories in the Senate. This currency escalation coincided with an all-time high for Bitcoin.

The dollar index advanced by 1.7% to 105.16 amidst optimistic forecasts pointing to a Republican win in Georgia. Trump's perceived inflationary policies have uplifted treasury yields, which in turn have bolstered the dollar.

The increase in treasury yields was evident with the 10-year U.S. treasury yield climbing 17 basis points. Furthermore, the U.S. currency's gains were reflected against the Mexican peso and yuan. In light of these developments, Japan has stated its intent to closely monitor currency market movements.

(With inputs from agencies.)