Dollar gains 1.5% against yen, euro ahead of US election result

PHILADELPHIA, PENNSYLVANIA – NOVEMBER 05: Democratic presidential nominee, U.S. Vice President Kamala Harris speaks during the closing rally of her campaign at the base of the iconic “Rocky Steps” at the Philadelphia Museum of Art on November 05, 2024 in Philadelphia, Pennsylvania. On the eve of one of the tightest presidential elections in modern U.S. history, Democratic presidential nominee, U.S. Vice President Kamala Harris and former President Donald Trump are campaigning in key battleground states, with Harris campaigning across Pennsylvania and Trump campaigning in North Carolina, Pennsylvania and Michigan. (Kent Nishimura/Getty Images) (Photo by Kent Nishimura / GETTY IMAGES NORTH AMERICA / Getty Images via AFP)
A voter fills out her ballot at a polling station in Ashburn, Virginia, on November 5, 2024. Voters in Ashburn, Virginia, participate in the 2024 U.S. Election, casting their ballots in a highly anticipated race between Kamala Harris and Donald Trump. 
TOKYO – The dollar surged around 1.5 percent against the yen and the euro on Wednesday as traders weighed the budgetary implications of a Donald Trump win in the US presidential election.
The greenback rose 1.51 percent against the Japanese currency to buy 153.89 yen at around 0245 GMT and jumped 1.41 percent to nearly 0.93 euros.
Analysts say the US Federal Reserve could be less likely to aggressively cut interest rates under Trump’s budgetary policy.
The Republican former president is battling it out against Democratic Vice President Kamala Harris for the White House.
On Wednesday morning in Asia, polls were gradually closing across the United States, with a long night of waiting for results expected.
“The markets are starting to bet on a return of Trump,” with his margin wider than forecast in Florida, said Yugo Tsuboi, chief strategist at Daiwa Securities, quoted by Bloomberg News.
Investors have been jockeying for position ahead of the election, which polls have shown to be too close to call.
Analysts said there was also close attention being paid to Congressional races, adding that a clean sweep for Trump and Republicans would likely boost the dollar and Treasury yields owing to his plans to cut taxes and impose tariffs on imports.
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