The U.S. dollar has maintained its upward momentum against major global currencies, reaching its highest point in a year on Thursday. This marks the fifth consecutive day of gains, spurred by market expectations following Donald Trump's potential return to the U.S. presidency.
According to Reuters, the dollar soared above 156 yen for the first time since July, while the euro dropped to its lowest level since November 2023, settling at 1.0566. The British pound also hit a four-month low against the dollar, standing at 1.2697.
Market Reactions and Economic Policies
The market anticipates that the new Trump administration will enforce trade tariffs, restrict immigration, and increase the fiscal deficit—policies that could drive inflation. With the Republican Party projected by Edison Research to control Congress, Trump is expected to have significant leeway to enact his economic agenda.
The dollar index, which measures the currency against six major counterparts, including the euro and yen, rose 0.11% to reach 106.58 after peaking at 107.07, its highest since early November 2023.
Cryptocurrency and Global Currency Movements
Meanwhile, Bitcoin pulled back from its overnight record of $93,480, settling at $89,008, as Trump vowed to position the U.S. as the "crypto capital of the world." In contrast, Ethereum fell 2.23% to $3,084.30.
The Swiss franc also depreciated against the dollar, which climbed 0.19% to 0.8874 francs. Additionally, the Australian dollar hit a three-month low following slightly weaker labor data, landing at $0.6453.
Financial Markets and Future Prospects
On November 6, following Trump's confirmed victory, financial markets experienced a significant boost. Wall Street opened at record highs, driven by the new Republican administration's promises of corporate tax cuts, favorable tariffs, and deregulation.
Trump's triumph sent markets soaring, with Bitcoin reaching unprecedented levels. Wall Street benefited from fiscal promises, and companies like Tesla, along with cryptocurrencies such as Bitcoin and Ether, saw increases following his endorsement.