The US dollar has surged as Donald Trump wins the presidency and will re-enter the White House......See Full Story>>.....See Full Story>>
Bitcoin has also hit a record high while traders bet on potential tax cuts, increased tariffs, and rising inflation under Trump’s second term.
This election result will have a major impact on the global economy.
The Republican Party is also set to take control of the Senate, although there are still votes left to count.
The dollar has soared by about 1.4% against a host of different currencies, including the pound, euro and the Japanese yen.
In Japan, the benchmark Nikkei 225 stock index ended the session up by 2.6%, while Australia’s ASX 200 closed 0.8% higher.
The major US stock indexes also look likely to open sharply higher. That came after the Dow Jones Industrial Average, S&P 500 and Nasdaq all closed more than 1% higher on Tuesday.
The value of Bitcoin has also jumped by $6,000 (£4,645) to a record high of $75,371.69, surpassing the previous high of $73,797.98 seen in March this year.
Trump has previously pledged to make the US the “bitcoin and cryptocurrency capital of the world”.
His approach stands in stark contrast with that of the Biden administration, which led a sweeping crackdown on crypto firms in recent years.
Trump had suggested that he would fire Gary Gensler, the chair of the Securities and Exchange Commission who has received a backlash online from advocates of the digital currency.
This is due to Mr Gensler’s agency introducing new rules around environmental disclosures, which have been paused, as well as legal action against crypto companies.
Trump has also said he plans to put billionaire Elon Musk in charge of an audit of governmental waste.
Mr Musk has long been a proponent of cryptocurrencies and his company Tesla famously invested $1.5bn in Bitcoin in 2021, although the price of the digital currency can be very volatile.
Tesla’s Frankfurt-listed shares rallied over 14% at the open on Wednesday. Mr Musk, Tesla’s top shareholder, has supported Trump throughout his electoral campaign.
Experts predicted a turbulent day elsewhere on financial markets, however, as a response to global uncertainty and Trump’s potential plans for the economy.
US bond yields, the return a government promises to pay buyers of its debts, also soared on Wednesday.
A bond is essentially an IOU that can be traded in the financial markets and governments often sell bonds to investors when they want to borrow money.
Analysts have suggested this could be down to traders expecting that some of Trump’s economic measures could lead to higher prices.
Donald Trump has said, for example, he would dramatically increase trade tariffs, especially on China, if he became the next US president.