The dollar posted its biggest gain in eight years after Trump’s victory

The US currency rose sharply against the euro and sterling on November 6, as traders expect the Republican politician’s tariff and tax plans to lead to rising inventories, inflation and a slowdown in interest rate cuts. interest, writes the newspaper.

The dollar index, which measures its value relative to other currencies, rose 1.8%, its biggest daily gain since June 2016, he said. The pound fell 1.5% to $1.285 and the euro fell 2% to $1.071.

If US Republican politicians gain control of both houses of Congress, the dollar could rise even further, Francesco Pesole, currency strategist at financial services firm ING, told the Financial Times. According to the latest data from CNN, Republicans won 52 seats in the Senate (Democrats – 42) and 204 seats in the House of Representatives (against 182 for Democrats).

On the topic: US elections on November 5: what you need to know

After Trump won the election, other financial indicators also showed growth. Notably, the S&P 500 index rose 2% to a record high in the opening of trading on Wall Street on Wednesday, and the Nasdaq Composite rose 1.8%. Additionally, the Vix index, which Wall Street uses to measure expected stock price volatility, fell to its lowest level since September, the Financial Times noted.

In addition, the newspaper writes, the yield on the 10-year US Treasury bond rose 0.19 percentage points to 4.48%, the highest since July, and the yield on the 30-year Treasury bond reached 4.63 %, the highest. daily increase in more than a year.

On November 5, the elections for president and members of the United States Congress were held. The fact that Trump won them became known on November 6: the Republican politician was able to collect more than 270 electoral votes, necessary for victory. The official results of the electoral vote will be announced in early January and the inauguration of the new president will take place on the 20th of the same month.