Bitcoin hits 3-month high after Trump odds surge

Cryptocurrency bitcoin hit a three-month high in early trading on Monday and the dollar looked set to extend its gains in markets counting down to the U.S. presidential election in two weeks.

News ID: ۲۰۰۰۱۹۶

21 October 2024

EghtesadOnline: Election polls that show rising odds of former President Donald Trump winning the Nov. 5 election are boosting the dollar, since his proposed tariff and tax policies are seen as likely to keep US interest rates high and undermine currencies of trading partners.

Currency moves in major markets last week were driven by the European Central Bank's dovish rate cut and strong US data that pushed out expectations for how fast U.S. rates can fall, particularly if Trump wins the presidency.

The yen was down nearly 0.2% at 149.26 per dollar but staying on the stronger side of 150 per dollar after having breached that level briefly last week for the first time since early August.

The dollar index , which measures the greenback against major rivals, was at 103.49. It fell 0.3% on Friday as risk appetite picked up broadly across markets after China announced more details of its broad stimulus package, but logged 0.55% gains for the week. The euro stood flat at $1.0862 and sterling was also flat around $1.3041.

Bitcoin got a lift from Trump's improving prospects since his administration is seen as taking a softer line on cryptocurrency regulation. It was last up 0.2% at $68,869 , off a peak of $69,487 that took its gains since Oct. 10 to 18%.

With no major economic events due this week, market focus will be on corporate earnings and U.S. election risk, and possibly a rise in costs to hedge dollar and other portfolio risks, Chris Weston, head of research at Australian online broker Pepperstone, said in a note.

"With just 15 days to go until the US election, traders need to decide if now is the right time to start placing election trades with greater conviction," Weston said. / Mehr