The pound fell sharply against the dollar, dropping 1.4% to $1.285—its lowest in two months—as traders adjusted to the news of Donald Trump’s projected return to the White House.
Known for his “America First” policies, Trump’s victory sent the dollar soaring, with gains of 2% against the euro and 1.8% versus the yen. Investors are betting that his plans for tariffs and increased spending could fuel inflation and maintain high US interest rates.
Stock markets also rallied, with the FTSE 100 in London up 1.3% and the mid-cap FTSE 250 jumping 1.8%. US-facing stocks led the gains, with Ashtead up 6.8%, InterContinental Hotels climbing 5.7%, and Entain rising 4.9%.
US markets appeared poised to continue the rally, with S&P 500 and Dow futures indicating gains over 2% as trading opened. Treasury yields spiked, with 10-year bond yields reaching 4.47%, as investors anticipated higher growth and fiscal spending under Trump. European bond yields, meanwhile, fell amid fears that Trump’s policies could hamper growth, prompting central banks to consider rate cuts.
Bitcoin surged 8.5% to a record $75,060 as Trump, nicknamed the “Crypto President,” reiterated his commitment to “putting America first” in his acceptance speech, further boosting crypto market confidence.
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Pound tumbles, stocks surge as Trump heads back to the White House