Dollar Strengthens Amid Trump's Election Victory
The US dollar has experienced a significant rise, reaching its highest level in a year against major currencies, following Donald Trump's recent victory in the presidential election. As of Thursday, the dollar traded above 156 yen for the first time since July, while the euro fell to its lowest level since November 2023, priced at $1.05310. Additionally, the British pound dropped to a four-month low against the dollar at $1.2630. Analysts attribute this dollar strength to anticipated economic policies from the incoming Trump administration, which are expected to include trade tariffs and tighter immigration restrictions, potentially leading to inflationary pressures.
The dollar index, which tracks the performance of the US currency against a basket of six major currencies, rose by 0.11% to 106.58, briefly touching 107, marking its highest point since early November 2023. The Swiss franc also faced pressure but managed a slight increase of 0.19% to 0.8874 francs. In contrast, the Australian dollar fell to a three-month low at $0.6453 following disappointing jobs data.
Cryptocurrency Market Surges with Trump's Promises
In a related economic development, Bitcoin has surged to a new record high of $93,480 before stabilizing at $89,080 on Thursday. This surge is partly attributed to Trump's pledge to establish the United States as the
cryptocurrency capital of the planet.
The global cryptocurrency market cap surpassed $3.1 trillion, significantly increasing from $2.19 trillion prior to the US elections. Bitcoin alone accounts for over half of this market cap, valued at approximately $1.79 trillion.
Standard Chartered Bank has forecasted a robust increase in the prices of Bitcoin and Ethereum in the coming years, predicting that the overall market value of cryptocurrencies could exceed $10 trillion by the time of the US midterm elections in late 2026. With Trump's Republican Party controlling both houses of Congress, analysts believe that the new administration will have the authority to implement favorable regulations for cryptocurrencies, further boosting market confidence.
