The dollar advanced and Treasury futures fell as investors ratcheted up wagers that Donald Trump would win the US presidential election after an assassination attempt.
The greenback strengthened against all other Group-of-10 currencies, the Mexican peso slipped and Bitcoin touched its highest in nearly two weeks. Futures pointed to a rise in Treasury yields when cash trading starts in Europe.
The moves reflect bets on the prospect of the Republican’s return to the White House ushering in looser fiscal policy and higher tariffs, which are generally viewed as likely to benefit the dollar and weaken Treasuries.
Stocks slipped Asia, with Chinese stocks in Hong Kong extending losses after data showed weakening momentum in the world’s second-largest economy. Indian shares climbed and S&P 500 contracts pointed to a higher US open.
“With markets pricing in a greater possibility of Trump 2.0, the US dollar will likely get some tailwinds while the Mexican peso and Chinese yuan could suffer,” said Charu Chanana, market strategist at Saxo Capital Markets. “Trump trades could be back in focus.
