Asian currencies fell sharply on Wednesday as news emerged that Republican Donald Trump likely secured a victory in the U.S. presidential election. The Singapore dollar dropped 1.3% to a three-month low, marking its steepest one-day loss since 2015, while Thailand’s baht slumped 1.9% to a two-month low, its biggest decline since February. This dollar surge, coupled with a rise in U.S. Treasury yields, had broad implications for global markets. Trump’s win, projected by Fox News but not yet confirmed by other media, saw the dollar experience its largest daily rise since the COVID-19-induced market upheaval of March 2020.
In Pakistan, the rupee remained stable, while regional currencies like the Chinese yuan and Mexican peso faced added pressure amid Trump’s historically aggressive stance on tariffs and immigration. The Mexican peso sank to a two-year low, highlighting its vulnerability to anticipated trade policy shifts.
Trump’s proposed policies—perceived as inflationary—are expected to further bolster the dollar, potentially pressuring trading partners’ currencies and impacting Asia’s export-driven economies, including South Korea, Singapore, and Thailand. Analysts warn that tariff-related measures may provoke more market volatility. Trump’s victory also led to gains in bitcoin, which reached a record high of $75,000, and a sharp uptick in U.S. bank stocks, as investors anticipate deregulation and tax cuts.
Market response reflects both optimism and caution, as some expect Trump’s policies to support corporate growth while others brace for increased trade tensions. European and Asian equity markets showed mixed reactions; Hong Kong’s Hang Seng index fell 2.7%, while Tesla shares surged ahead of U.S. premarket trading. Investors are preparing for a potentially turbulent market landscape amid Trump’s economic agenda, marked by a stronger dollar, tighter trade policies, and elevated volatility.
