- By Aditya Pratap Singh
- Wed, 06 Nov 2024 05:33 PM (IST)
- Source:JND
Us Election Result 2024: The US dollar and bitcoin have hit record highs, driven by Donald Trump's strong performance in the US presidential election, causing a stir in the financial world. With Trump winning two of the seven swing states and maintaining leads in the other five, traders have confidently supported his claim to the presidency, anticipating that his pro-market policies could soon be reinstated.
In the event of a Trump win, traders expect new tax cuts and tougher tariffs, which would send major markets into a tailspin. Trump has consistently outperformed his opponent Kamala Harris on economic issues and inflation, a sign that investors expect a business-friendly White House.
The US dollar rose to Rs 84.22 against the Indian rupee, its highest ever, and rose 1.5% against the yen to 154.33. The dollar gained 1% against the euro, while it climbed more than 3% against the Mexican peso. Bitcoin also hit a new record high, hitting $75,330.88, nearly $6,000 higher than its previous high in March. Trump's promises to make the US the "cryptocurrency capital" and to hire Elon Musk to lead a sweeping audit of government waste have sparked fresh interest from the cryptocurrency community, resulting in a strong surge in bitcoin.
Wall Street reacts positively
Wall Street reacted positively, with S&P 500 futures and the Nasdaq rising more than 1% on expectations of less corporate regulation and tax cuts under Trump's presidency. Meanwhile, in Asia, optimism spread as news of Trump's rise spread. India's Sensex jumped nearly 800 points, while the NSE Nifty 50 gained 0.88%, buoyed by strong performance from Indian IT firms that earn significant revenues from US clients. By noon, the BSE Sensex rose 0.9% to 80,193.11, capping a lively day for Indian markets.
European Market Does Not React Much
In contrast, European markets showed a tepid reaction. Concerns about a potential global trade war have made European traders cautious about a Trump win. The EURO STOXX 50 declined 0.61%, and Germany's DAX dropped 0.55%, while the FTSE remained steady.
Indian Stock Market
Benchmark Sensex climbed 901 points on Wednesday as stock markets rose by more than 1%. The rally in stock markets was fuelled by hopes that Donald Trump will win the US presidential election, with heavy buying in IT and pharma stocks. The BSE Sensex extended its gains for the second day, closing at 80,378.13, up 901.50 points or 1.13 per cent. During the day, it touched an intraday high of 80,569.73, up 1,093.1 points or 1.37 per cent. The NSE Nifty rose 270.75 points or 1.12 per cent to close at 24,484.05.
US Fed Rate Cut
Adding to the intrigue, this election result aligns with an upcoming policy decision by the US Federal Reserve, where analysts expect a potential 25-basis-point cut in the lending rate. This would follow September's 50-basis-point cut, suggesting continued monetary easing amid global market volatility.
With Trump's potential victory inching closer, markets around the world are gearing up for a new chapter - a chapter marked by tax cuts, tariffs, and the view of the US as a global cryptocurrency powerhouse. Investors are watching anxiously, as the financial landscape is set to transform.
