U.S. dollar jumps as Donald Trump recaptures the White House

The U.S. dollar strengthened against the Mexican peso and other major global currencies Wednesday as former president Donald Trump recaptured the White House, becoming just the second president in history to return to win two nonconsecutive White House terms. NBC News projects Trump's victory, making the 78-year-old the oldest person ever to win a U.S. presidential election.

The greenback gained 0.8% against the Mexican peso, hitting its highest level since 2022 in overnight trading. The dollar strengthened by more than 1% against each of the Swiss franc, Japanese yen and Chinese yuan. The ICE U.S. Dollar Index rose 1.6%, hitting its highest level since July.

The euro fell to 1.0732 against the dollar and hit its lowest level since late June.

The U.S. currency's gains extended as election results poured in favoring Trump over Harris.

NBC News projects that Trump has won key battleground states of North Carolina, Pennsylvania and Georgia, helping him secure the necessary 270 Electoral College votes to secure victory. NBC News also projects that the Republicans will retake the Senate.

Traders generally expected that a strong night for Trump and Republicans in Congress could push the greenback higher. Trump's proposals to hike tariffs against major U.S. trading partners would, in theory, result in a stronger dollar.

"Levies on trade should increase domestic business activity and reduce U.S. imports," Paul Christopher, head of global market strategy at the Wells Fargo Investment Institute, wrote in a note to clients on Tuesday, before results were known. "We believe these effects should help more domestic-oriented small-cap companies and raise the U.S. dollar's exchange value."

The dollar had generally strengthened in the runup to Election Day. The Dollar Index rose more than 3% in October, though it had dipped in recent days.

The dollar has strengthened ahead of the election.

The rally for the dollar could have ripple effects throughout global markets, said Adam Turnquist, chief technical strategist at LPL Financial.

"Continued strength in the dollar could weigh on international stocks, especially emerging markets, and most commodities," Turnquist said Wednesday.