TOKYO - The dollar surged around 1.5 per cent against the yen and the euro on Wednesday as traders weighed the budgetary implications of a Donald Trump win in the US presidential election.
The greenback rose 1.51 per cent against the Japanese currency to buy 153.89 yen at around 0245 GMT and jumped 1.41 per cent to nearly 0.93 euros.
Analysts say the US Federal Reserve could be less likely to aggressively cut interest rates under Trump's budgetary policy.
The Republican former president is battling it out against Democratic Vice President Kamala Harris for the White House.
On Wednesday morning in Asia, polls were gradually closing across the United States, with a long night of waiting for results expected.
"The markets are starting to bet on a return of Trump," with his margin wider than forecast in Florida, said Yugo Tsuboi, chief strategist at Daiwa Securities, quoted by Bloomberg News.
Investors have been jockeying for position ahead of the election, which polls have shown to be too close to call.
Analysts said there was also close attention being paid to Congressional races, adding that a clean sweep for Trump and Republicans would likely boost the dollar and Treasury yields owing to his plans to cut taxes and impose tariffs on imports. - AFP