The U.S. dollar continues to strengthen against major currencies, reaching its highest level in a year this Thursday and marking five consecutive days of gains, driven by market expectations surrounding the potential return of Donald Trump to the presidency of the United States.
According to Reuters, this development places the dollar above 156 yen for the first time since July, while the euro has fallen to its lowest level since November 2023, remaining at 1.0566, and the British pound has hit a four-month low against the dollar, standing at 1.2697.
The market anticipates that the new Trump administration will impose trade tariffs, restrict immigration, and increase the fiscal deficit, measures that could be inflationary.
Furthermore, with control of Congress in the hands of the Republican Party, as projected by Edison Research on Wednesday, Trump will have broad powers to implement his economic agenda.
The dollar index, which measures the value of the currency against six major currencies including the euro and the yen, rose by 0.11% to reach 106.58, after hitting a high of 107.07, its highest level since early November 2023.
For its part, Bitcoin pulled back from its record of $93,480 reached overnight, settling at $89,008, while Trump has promised to make the U.S. the "world capital of crypto." Ethereum, however, fell by 2.23% to $3,084.30.
The Swiss franc also depreciated against the dollar, which rose by 0.19% to 0.8874 francs, while the Australian dollar fell to a three-month low following slightly weaker employment data, standing at $0.6453.
On November 6, following the confirmation of Trump's victory, there was a significant surge in the financial markets.
Wall Street opened the day at historic highs, driven by the new Republican administration's promises to reduce corporate taxes, implement favorable tariffs, and promote deregulation.
Trump's success boosted the markets and Bitcoin to historic highs. Wall Street benefited from the fiscal promises, while Tesla and cryptocurrencies like Bitcoin and Ether also saw increases following his support.
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