He global dollar was headed for its biggest one-day rise since March 2020 against its major peers on Wednesday and bitcoin jumped to an all-time high after donald trump was re-elected president, and the Republicans won in the Senate, with good results also in the House of Representatives.
He dollar index —which measures the performance of the greenback in relation to a basket of six other internationally relevant currencies— rose 1.7% to 105.16 units, a four-month high and on track to be its best day since March 2020 The rise of the US currency began after the first signs of a Republican victory in Georgia and the gains have been maintained throughout the European morning.
Analysts consider that the tax, tariff and immigration policies of Trump are inflationary, which drives up the yields of the treasury bondsand, in turn, the dollar. “There has already been a very strong reaction, a strong increase in dollar”, told Reuters Niels Christensen, chief analyst of Nordea. “Expectations of a more flexible fiscal policy and a tight labor market point to greater inflation and higher yields,” he added.
The benchmark 10-year U.S. Treasury yield rose 17 basis points to 4.44571%, a four-month high.
Furthermore, the dollar jumped more than 3% to 20.8038 mexican pesos, a maximum of more than two years. And it rose up to 1.3%, to 7.1967 yuan, in offshore trade for the first time in almost three months. Mexico and China are among the countries that could be most affected by Trump’s potential tariffs.
In parallel, the bitcoin rose as much as 8.6% to reach a record high of $75,389. It was last up about 7.5% at $74,361. Trump is seen as more actively supporting cryptocurrencies than Kamala Harris.
Republicans also gained control of the Senate and made gains in the House of Representatives as the party fought to retain control there, raising the potential for what is known as a “red sweep.” “The probability of a Republican sweep is quite large and that means a more expansive fiscal policy,” he said. Kirstine Kundby-Nielsencurrency analyst at Danske Bank. “A more expansionary fiscal policy and an ‘America First’ approach will support US assets, including the dollar,” he added.
A drop in Uruguay due to high volatility
In Uruguay, meanwhile, the dollar fell 0.09% compared to Monday and closed at 41,559 pesos, according to the price of the Central Bank of Uruguay (BCU), so that the US currency remains with some stability within the framework of a different day at a global level.
It is that the development of the elections in USA It was a day of high volatility that affected the dollar at a global level, despite which the greenback operated relatively calmly in the local exchange market.
Meanwhile, at the local level, the currency remains negative at the beginning of the month, with a loss of 0.22% of its value, while in the accumulated annual value it has appreciated 6.50%.
Source: Ambito
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