Dollar and Bitcoin Surge with Trump's Crypto Vision

As early election results came in for the US presidential election on Wednesday, traders bet on Donald Trump to win, which caused the dollar to rise and bitcoin to reach a new record high.

The dollar rose and bitcoin hit a fresh record high on Wednesday as early US presidential election results showed Republican candidate Donald Trump faring better than expected against Democratic Vice President Kamala Harris in the race for the White House.

The so-called Trump Trade gathered pace as signs emerged that the business magnate was closing the gap in safe states, even as both candidates were widely anticipated to secure such states.

The greenback was seen as likely to benefit from Trump's party faring better in congressional races, an outcome that would bode well for his plans to cut taxes, impose more tariffs and reduce government controls.

The dollar surged 1.5% to 154.33 yen for the first time since July. It was also up more than 1% versus the euro and over 2% against the Mexican peso.

Bitcoin rose almost $6,000 to a record $75,005.06, surpassing the previous peak of $73,797.98 hit in March. Trump has promised during the campaign to make the United States "the world capital of bitcoin and cryptocurrencies."

It was too close to call in the large swing states, but early results showed Trump ahead in Georgia, with traders also watching those returns closely.

"Georgia turning red early may have been the catalyst," said Max Gokhman of Franklin Templeton Investment Solutions, referring to early exit polls.

"If I had to pick one asset as a barometer of Trump sentiment it would be bitcoin."

People were also seen focusing on the congressional races, analysts said, with Trump's party seen as likely to boost the dollar and Treasury yields if they succeed in their races, given Trump's plans for tax cuts and import tariffs.

Republican control of the Senate and the House "could bring sweeping spending or tax policy shifts. Still, congressional gridlock could be the ultimate volatility suppressor," said Stephen Innes of SPI Asset Management.

Such an outcome could complicate matters for Federal Reserve Chair Jerome Powell, who is still trying to contain inflation as Trump's plans are seen as inflationary.

The central bank is due to make its latest policy decision on Thursday as the election unfolds. Most expect a 25-basis-point cut, following a 50-basis-point reduction in September.

Exporter stocks rose more than 2% in Tokyo as the dollar firmed against the yen. Equities also advanced in Shanghai, Sydney, Seoul, Singapore, Wellington, Manila and Taipei, but fell in Hong Kong and Jakarta.

All three major Wall Street indices rose more than 1% ahead of the price action.

The election outcome is being closely watched around the world, but in particular in China as Trump has waged a trade war with the economic powerhouse by slapping hefty tariffs on Chinese goods.

The vote comes as Chinese authorities are meeting to discuss stimulus measures to support the country's vast property sector, which is now grappling with a debt crisis, and bolster economic growth.

At 0300 GMT, market highlights were:

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