Dollar and Bitcoin Rally as Early US Votes Boost 'Trump Trades'

The dollar rallied broadly on Wednesday and Bitcoin surged as investors returned to so-called “Trump trades” and early results emerged for an extremely close U.S. presidential election.

According to Edison Research, Republican Donald Trump is currently ahead of Democrat Kamala Harris in the important battleground state of Georgia with more than half of the votes counted.

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However, with vote counting still in its early stages across the country, it could be hours or even days before a final result is known.

The dollar index – which measures the currency against six major currencies including the euro and the yen – climbed 0.75% to 104.14 as of 0148 GMT.

Trump's tariffs and immigration policies are viewed by analysts as inflationary, giving the dollar a boost.

“The market appears to be reacting to Trump's strong performance so far in Georgia, but until results come in from the more urban suburbs it remains too close to call,” said James Kniveton, a senior corporate forex trader at Convera.

“The US dollar has gained significant ground recently,” he said. “Risk currencies like the AUD that have appreciated ahead of a tightening race are suffering a pullback as Trump scores some early victories.”

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The Aussie fell 0.65% to $0.6594.

The euro fell 0.77% to $1.0844, while the dollar gained 0.85% to 152.85 yen.

Bitcoin climbed nearly 3% to $71,163. Trump is considered a more active supporter of cryptocurrencies than Harris.

Although the count is still in its early stages, the results so far are largely as expected and the contest is expected to be limited to the seven swing states.

The U.S. currency rose 1.4% to 20.3850 Mexican pesos. In offshore trading, it rose 0.52% to 7.1340 yuan. Mexico and China are among the countries likely to be hit hardest by Trump's tariffs.

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