Dollar Surge and Bitcoin Buzz: Financial Markets Rumble Post-Trump Victory

Following Donald Trump's election victory, the U.S. dollar reached a one-year high against major currencies amid global market shifts. The cryptocurrency Bitcoin also soared to new heights, influenced by policy expectations under the upcoming Trump administration, while potential fiscal changes boosted Treasury yields.

The U.S. dollar surged to a one-year high against major currencies on Thursday, marking a fourth consecutive winning session driven by Donald Trump's election victory. This momentum surpassed growing expectations for Federal Reserve easing.

Bitcoin, the cryptocurrency, also reached a record high of $93,480 overnight and continued its upward trend early in Asia's trading session. With Trump promising to turn the United States into the 'crypto capital of the planet', the market anticipates higher trade tariffs under the new administration. These changes are expected to fuel inflation and possibly slow the Federal Reserve's rate-cutting measures over the longer term. Expectations for increased deficit spending have sent Treasury yields higher, further supporting the dollar.

The projection from Edison Research that the Republican Party will control both congressional houses upon Trump's January inauguration grants him significant power to advance his policy goals. Economic expert Chris Weston of Pepperstone referred to the USD as a 'magical currency' sustained by carry, momentum, growth differentials, and anticipated fiscal and tariff changes.

(With inputs from agencies.)