Dollar and Bitcoin Surge Amid Tight Election Race

The U.S. dollar and bitcoin surged as early U.S. election results showed Donald Trump leading in Georgia against Kamala Harris. Despite the early lead, vote counting is ongoing and final outcomes are yet to be determined. Analysts view Trump's policies as inflationary, impacting currencies globally.

The dollar rallied on Wednesday alongside a bitcoin spike as investors engaged in 'Trump trades' with early U.S. presidential election results being announced. In Georgia, Trump is reportedly leading over Harris with over half the ballots counted, according to Edison Research.

Despite the early lead, vote counting remains in its initial stages nationally, delaying a definitive result. The dollar index, which evaluates the currency against six major counterparts, rose 0.75% to 104.14 as of 0148 GMT.

Analysts perceive Trump's tariff and immigration policies as contributing to inflation, boosting the dollar. James Kniveton, a senior corporate forex dealer at Convera, highlighted how market reactions reflect Trump's performance in Georgia but cautioned that outcomes from urban suburbs could change the race.

(With inputs from agencies.)