Dollar Dominance and Crypto Surge Amid Trump Transition

The U.S. dollar reached a four-month high as bitcoin surged during anticipation of Trump's pro-crypto administration. The euro weakened, and the yuan hit a three-month low while Trump considers appointing hawkish officials on China. A potential tax agenda and tariffs influence market dynamics amid political shifts.


Devdiscourse News Desk | Updated: 12-11-2024 15:00 IST | Created: 12-11-2024 15:00 IST
Dollar Dominance and Crypto Surge Amid Trump Transition
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The U.S. dollar climbed to a four-month high against major currencies on Tuesday, while bitcoin continued its bullish rally as investors anticipate a favorable trading environment under Donald Trump's upcoming administration. The euro fell to a seven-month low, and the yuan reached its weakest in over three months, reflecting concerns over potential Trump tariffs on Europe and China.

Bitcoin soared to an unprecedented high of $89,982, as Trump's vision to establish the U.S. as the "crypto capital" gains momentum. "We are witnessing a regulatory tailwind," said Gautam Chhugani from Bernstein, expecting a Trump-led crypto-friendly stance from the SEC.

The U.S. dollar index rose to 105.78, its highest since July. Reports suggest Trump may appoint Senator Rubio and Congressman Waltz, both critical of China, to key foreign policy roles. These developments could accelerate Trump's policy proposals as he prepares to control Congress, which could entail reduced taxes and potential trade confrontations.

(With inputs from agencies.)

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