The pound fell sharply against the dollar, dropping 1.4% to $1.285—its lowest in two months—as traders adjusted to the news of Donald Trump’s projected return to the White House.

Known for his “America First” policies, Trump’s victory sent the dollar soaring, with gains of 2% against the euro and 1.8% versus the yen. Investors are betting that his plans for tariffs and increased spending could fuel inflation and maintain high US interest rates.

Stock markets also rallied, with the FTSE 100 in London up 1.3% and the mid-cap FTSE 250 jumping 1.8%. US-facing stocks led the gains, with Ashtead up 6.8%, InterContinental Hotels climbing 5.7%, and Entain rising 4.9%.

US markets appeared poised to continue the rally, with S&P 500 and Dow futures indicating gains over 2% as trading opened. Treasury yields spiked, with 10-year bond yields reaching 4.47%, as investors anticipated higher growth and fiscal spending under Trump. European bond yields, meanwhile, fell amid fears that Trump’s policies could hamper growth, prompting central banks to consider rate cuts.

Bitcoin surged 8.5% to a record $75,060 as Trump, nicknamed the “Crypto President,” reiterated his commitment to “putting America first” in his acceptance speech, further boosting crypto market confidence.

Jamie Young

Jamie is a seasoned business journalist and Senior Reporter at Business Matters, bringing over a decade of experience in UK SME business reporting. Jamie holds a degree in Business Administration and regularly participates in industry conferences and workshops to stay at the forefront of emerging trends. When not reporting on the latest business developments, Jamie is passionate about mentoring up-and-coming journalists and entrepreneurs, sharing their wealth of knowledge to inspire the next generation of business leaders.