Around 10:05 a.m. (11:05 a.m. in Paris), the American currency jumped 1.66% against the euro, to $1.0752.
The dollar and bitcoin soared this Wednesday after Republican Donald Trump’s victory in the US presidential election, with markets estimating that his policies will benefit these assets.
Around 10:05 a.m. GMT (11:05 a.m. in Paris), the American currency jumped 1.66% against the euro, to $1.0752. The single European currency had previously hit a low since the end of June against the greenback, at 1.0703 dollars.
1.11% against the pound, to 1.2899 dollars
The greenback also rose 1.11% against the pound, to $1.2899.
The Dollar Index, which compares the American currency to a basket of currencies, reached its highest since the beginning of July on Wednesday, at 105.311 points.
Donald Trump, 78, succeeded in his challenge to return to the White House, a clear victory, which is causing shock waves in the United States and across the world.
A “political victory never seen before”
Without waiting for the final count, the Republican claimed on Wednesday an “unprecedented political victory” in the United States and received a shower of congratulations from abroad, from French President Emmanuel Macron to Israeli Prime Minister Benjamin Netanyahu.
Donald Trump will certainly keep his promises to “focus on inflationary policies, tax cuts (if the Republicans win the House of Representatives)”, increased “customs tariffs” and stricter immigration controls, going through “massive expulsions”, summarized Derek Halpenny, analyst at MUFG.
Rising loan interest rates
This program is likely to encourage the American central bank (Fed), which meets Wednesday and Thursday, to keep interest rates high for longer, which pushes up the American dollar, but also bond yields. State of the country.
The interest rate on 10-year US government bonds thus climbed on Wednesday to 4.41%, compared to 4.27% at the close the day before.
American presidential election: “Thank you for electing me”, Donald Trump announces his victory in Florida
Emerging currencies are suffering from this outlook as “investors price in higher US tariffs, increased geopolitical risks and greater global uncertainty under the Trump presidency,” noted Ebury analyst Matthew Ryan.
Collapse of the Mexican peso
The Mexican peso, in particular, collapsed by 2.68%, to 20.6670 pesos per dollar, after falling to its lowest level since August 2022 against the greenback, at 20.8072 pesos.
For its part, bitcoin hit a new absolute record on Wednesday at $75,371.67, crushing its previous all-time high from last March.
After a jump of almost 9%, the largest digital currency calmed its enthusiasm, still increasing by 6.36%, to 73,564.58 dollars, as investors anticipate regulatory relaxation and tax measures favoring the sector of cryptocurrencies.
With AFP
