Following Republican Donald Trump's victory in the US presidential election, the dollar surged dramatically. As reported by the Financial Times, the US dollar index, measuring the greenback’s strength against a basket of six major global currencies, skyrocketed by 1.92% to reach 105.441, a level not seen since 2016.
Despite the subsequent retreat of 1.61%, the dollar's rally was still impressive, especially considering that the last time the US currency showed such strong upside momentum was when Trump first took office.
Interestingly, Trump recently shared an ambitious notion, proposing a "simple solution" to the staggering $35 trillion US national debt. He floated the idea of using Bitcoin to pay off the country's debt. "I'll write on a little piece of paper: 35 trillion crypto—we have no debt!" he said.
Given that preliminary results show Trump winning with 277 electoral votes (with a threshold of 270 needed), with final results to be announced on December 11, it is clear that the dollar is not shy about expressing its delight at a Republican victory, leaving us to watch developments unfold.