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Turkish lira strengthens against dollar, crypto surges after Trump’s victory

Turkish lira strengthens against dollar, crypto surges after Trump's victory The dollar started the day at 34.2480 liras and the euro at 36.8900 liras, Istanbul, Türkiye, Nov 6 2024. (IHA Photo)
By Newsroom
Nov 6, 2024 1:06 PM

Currency markets showed heightened activity as Republican candidate Donald Trump declared victory. Although the dollar index rose, the Turkish lira opened the day with slight gains against the dollar, euro and pound, while Bitcoin reached a record high.

The Turkish lira appreciates to 34.23 against the dollar. Before the election results became clear, the Turkish lira was at 34.36 at 6.00 a.m. (UTC+3).

Cryptocurrencies also surged, especially so-called “meme coins” like Dogecoin and Shiba Inu, promoted by Trump supporter Elon Musk, soared alongside Bitcoin.

Turkish lira strengthens against dollar, crypto surges after Trump's victory
Bitcoin/USD Exchange Rate, Nov 6 2024. (via investing.com)
Turkish lira strengthens against dollar, crypto surges after Trump's victory
Dogecoin/USD Exchange Rate, Nov 6 2024. (via investing.com)
Turkish lira strengthens against dollar, crypto surges after Trump's victory
Shiba-Inu/USD Exchange Rate, Nov 6 2024. (via investing.com)

TL gains broadly, euro drops sharply, yuan slides

The Turkish lira recorded notable gains, especially against gold and the euro, buoyed by a rising dollar index. The lira’s gain approached 1% against gold and exceeded 1.4% against the euro.

Turkish lira strengthens against dollar, crypto surges after Trump's victory
Gold Gram/TL Exchange Rate, Nov 6 2024. (via investing.com)
Turkish lira strengthens against dollar, crypto surges after Trump's victory
Euro/TL Exchange Rate, Nov 6 2024. (via investing.com)

Meanwhile, the euro fell 1.5% against the dollar, marking its most significant decline since March 19, 2020, amid the COVID-19 pandemic. China’s yuan also depreciated by 0.9%, reflecting broader currency market pressures.

Turkish lira strengthens against dollar, crypto surges after Trump's victory
Euro/USD Exchange Rate, Nov 6 2024. (via investing.com)
Turkish lira strengthens against dollar, crypto surges after Trump's victory
CNY/USD Exchange Rate, Nov 6 2024. (via investing.com)

Trump’s economic policies, market reactions

Market reactions reflect investor concerns over potential shifts in economic policies under Trump, particularly regarding tariffs and taxes. Trump has previously advocated for trade policies aimed at boosting American industries through tariffs, as highlighted in his victory speech, which could create inflationary pressures.

Higher tariffs on imports may strengthen the dollar while putting pressure on currencies sensitive to trade, like the euro and yuan.

Additionally, expected tax cuts could boost market confidence domestically, making U.S. investments more attractive to foreign investors and further supporting the dollar’s rally.

Cryptocurrencies, viewed by some as a hedge against inflation, may have drawn attention from investors speculating on the inflationary effects of Trump’s policies.

The significant rise in Bitcoin and related cryptocurrencies may reflect a flight to decentralized assets amid anticipated market volatility.

Last Updated:  Nov 9, 2024 4:46 PM