The US dollar jumped to its highest level in 2024, after Donald Trump announced his victory in the presidential election. This rise came amid speculation that Trump’s policies will push the US Federal Reserve to keep interest rates high for a longer period.
It was reported that the dollar rose against all major currencies in global markets. It is believed that the rise in US bond yields will lead to more money being drawn to the United States, which strengthens the value of the dollar. Reports also showed that investors are betting that Trump’s economic policies will lead to an increase in yields on government bonds, which will increase the attraction of investments to the US market.
Analysts believe that Trump’s victory will directly affect US interest policy. As investors continue to expect that the Trump administration will postpone interest rate cuts, the market will expect the Federal Reserve to keep interest rates at high levels. In contrast, expectations indicate that this will strengthen the dollar in the long term.
The US currency was able to achieve significant gains due to these expectations. The dollar recorded a significant rise against the euro, the British pound, and the Japanese yen, reflecting the increasing demand for US assets. Investors also expect the Trump administration to maintain pro-growth economic policies, which will strengthen the US economy in general.
Experts expect that Trump will continue to implement economic policies aimed at supporting the business sector and reducing taxes, which may support investments in US bonds. This may prompt the Federal Reserve to maintain higher interest rates for a longer period than was expected under the previous administration.
Despite the significant rise in the value of the dollar, some warn that the increase in bond yields may have negative effects on some other economic sectors.
Trump promises to cut taxes and impose new tariffs after winning the election
US President-elect Donald Trump has promised to cut taxes and impose new tariffs on imports.
which could negatively impact the currencies of some of the United States’ largest trading partners. These policies raise concerns about their impact on the global economy. Many experts believe that these measures could lead to rising inflation and an increase in the US budget deficit.
In this context, Priya Misra, portfolio manager at JP Morgan Investment Management, said that Trump’s plan to raise tariffs and cut taxes could contribute to rising inflation and the government deficit. She added that these policies are likely to lead to higher interest rates in the long term.
which would increase the economic challenges that the US economy may face.
On the other hand, financial markets witnessed a positive response after Trump announced his victory in the elections. US stock index futures rose significantly on Wednesday. The Dow Jones jumped 970 points, or 2.3%, while the Standard & Poor’s 500 index recorded an increase of 115 points, or 2%. Nasdaq 100 futures also rose 340 points, or 1.7%, reflecting optimism about Trump’s victory and investors’ expectations about future economic policies.
Trump previously announced that his victory in the 2024 presidential election gives him a “strong mandate” to implement his economic policies. He added that this mandate will allow him to achieve the reforms he promised during his election campaign.
which include reducing taxes and amending trade policies.
Trump relies heavily on his protectionist positions on trade and immigration issues.
which raises concerns among some about the impact of these policies on economic relations with other countries. Trump’s policies are expected to continue to enhance inflationary trends in the US economy.
especially in light of the emphasis on imposing tariffs on imports.
The conclusion of the 2024 elections raises questions about the US stock markets
The quick conclusion of the 2024 election is a milestone for stock markets.
especially in light of the uncertainty that the 2020 presidential election witnessed. The election was characterized by many political and judicial turmoil.
which kept markets in a state of constant anticipation until the late hours. With the announcement of Donald Trump’s victory in the 2024 election, expectations for market stability increased.
but concerns remain about the impact of this result on the US economy.
Trump, the Republican candidate, won the 2024 US presidential race after a fierce competition with Kamala Harris, the Democratic Party candidate. Trump was able to reach the 270 electoral college votes barrier, which guaranteed him a clear victory. However, despite his victory, the election was surrounded by widespread controversy and ongoing lawsuits.
which raises questions about the impact of these circumstances on the stability of the next government.
This result was not limited to political impact only, but also had economic repercussions on stock markets. Although markets have witnessed significant fluctuations following Trump’s announcement of his victory, analysts’ expectations indicate that Trump’s victory may lead to relative stability in the markets. This stability may result from early recognition of the policies he may follow.
which focus mainly on reducing taxes and imposing more restrictions on international trade.
However, concerns remain about the continuation of judicial and political tensions in the coming period. With the continuation of the legal prosecutions targeting Trump, the new US administration may face major challenges in shaping its domestic and foreign policies.
which may negatively affect the financial market.
Therefore, the open question remains how stock markets will deal with these political and economic variables. Although Trump’s victory may boost the confidence of some investors, markets will remain under pressure from changing political factors.
