Dollar Surges As Trump's Early Wins Spark Economic Uncertainty

The dollar rallied as early exit polls in the U.S. presidential election suggested an edge for Donald Trump. His tariff and immigration policies are viewed as inflationary, boosting the dollar index. Bitcoin also climbed, with Trump seen as supportive of cryptocurrencies.

The dollar experienced a broad rally on Wednesday, coinciding with early exit polls in the tightly contested U.S. presidential election, which appeared to present an advantage for Republican Donald Trump.

In the key battleground state of Georgia, Trump led with 60.9% of the vote against Democrat Kamala Harris' 38.6%, based on Edison Research's findings with 10.1% of the vote accounted for. Trump secured victories in eight states, while Harris won three states and Washington, D.C., as projected by Edison Research. The early results matched expectations, with the election expected to hinge on seven pivotal swing states.

Analysts suggest that Trump's tariff and immigration policies could drive inflation, thereby strengthening the dollar. As of 0048 GMT, the dollar index, which compares the currency against six major peers, rose by 0.76% to reach 104.14. The euro declined by 0.77% to $1.0844, and the dollar increased by 0.68% to 152.64 yen. Bitcoin surged by more than 3% to $71,317, with Trump perceived as more favorable to cryptocurrencies than Harris.

(With inputs from agencies.)