Dollar Surges as Bitcoin Reaches New Heights Amid Trump's Pro-Crypto Stance

The U.S. dollar surged and Bitcoin reached an unprecedented peak as markets anticipated a Trump administration favorable to cryptocurrencies. Key cabinet appointments indicate possible tough trade policies with China and Europe, impacting currency values. The euro and yuan weakened against the dollar, with potential interest rate impacts in play.

The U.S. dollar climbed to a four-month high against major currencies Tuesday as Bitcoin hit a record high, spurred by investment optimism surrounding the incoming Trump administration. The euro and yuan struggled amid concerns of Trump's tariffs targeting Europe and China.

Bitcoin soared to an unprecedented $89,982, with expectations of a crypto-supportive regulatory environment under Trump's leadership. Analyst Gautam Chhugani foresees a pro-crypto SEC as the president-elect aims to establish the U.S. as a global crypto hub.

Speculations of Trump's cabinet choices, including Senator Marco Rubio for Secretary of State, stir anticipation of hardline trade policies. Meanwhile, inflationary risks and political uncertainties in Europe add further pressure on global currency markets.

(With inputs from agencies.)