The dollar recovered broadly on Wednesday, as early exit polls in the extremely close US presidential election appeared to give the advantage to Republican Donald Trump.
With 10.1% of votes counted in the key state of Georgia, Mr. Trump received 60.9% of the vote to Democrat Kamala Harris’s 38.6%, according to Edison Research.
Mr. Trump won eight states in the election, while Ms. Harris captured three states and Washington, according to Edison Research projections. The first results were as expected, with the vote expected to come down to seven key states.
Analysts view Trump’s tariff and immigration policies as inflationary and supportive of the dollar.
The dollar index – which measures the currency against six other currencies including the euro and yen – rose 0.76% to 104.14 by 0048 GMT.
The euro fell 0.77% to $1.0844, while the dollar added 0.68% to 152.64 yen.
Bitcoin rose more than 3% to $71,317. Trump is seen as more actively supportive of cryptocurrencies than Harris.
“It’s too early to call any of these races and to make any real projections about the results so far, but the U.S. dollar has regained a lot of lost ground recently,” said James Kniveton, senior forex trader at Convera.
“Risk currencies such as the Australian dollar, which had appreciated in anticipation of a tightening of monetary policy, are falling as Mr Trump scores his first victories.
The Australian dollar slipped 0.63% to $0.6595.
The US currency jumped more than 1% to 20.3050 Mexican pesos. It rose 0.46% to 7.1291 yuan in offshore trading. Mexico and China are among the countries hardest hit by Trump’s tariffs.
Canada
