Dollar Surges Amidst Trump's Presidential Victory

The dollar soared near four-month highs following Donald Trump's election victory. Investors anticipated potential economic changes, including the Federal Reserve's upcoming rate decision. Meanwhile, the UK pound rose after the Bank of England's interest rate cut, projecting faster growth and inflation. European currencies faced mixed reactions amid political shifts.

The dollar was buoyed to near four-month highs on Thursday, experiencing its strongest one-day rally in two years after Donald Trump's U.S. presidential win. Investors are now focused on the Federal Reserve's imminent rate decision, while the UK's pound strengthened post-Bank of England's rate cut announcement.

Despite Trump's win, the Federal Reserve is expected to slice interest rates by 25 basis points. Investors are keenly watching for Trump's key appointments and whether a Republican 'Red sweep' may facilitate his policy agenda, potentially bolstering the dollar.

Traders eagerly await the Fed's guidance following a lackluster October jobs report. Trump's policies could affect Fed rate decisions, while Europe's currencies navigated uncertain waters amid political convulsions, with the euro up 0.3% despite Germany's government crisis.

(With inputs from agencies.)