The NZD/USD currency pair retreated more than 1% on Wednesday, hitting a fresh three-month low of 0.5911, as market players positioned for the prospect of a Donald Trump victory following early results from the US election.

Trump captured 15 states, while Harris won 7 states and Washington, D.C., according to Edison Research. Trump led Harris by 247 electoral votes to 210, with 270 electoral votes required to win the presidency.

Still, critical battleground states, including Pennsylvania, were not likely to be called for hours.

Donald Trump’s tariff and immigration policies are viewed as inflationary, which drove up Treasury yields and the US Dollar.

“Trade-related currencies are likely to face the brunt of the Trump trade as markets prepare for a more volatile geopolitical environment and a resumption of the China trade war,” James Kniveton, senior corporate forex dealer at Convera, was quoted as saying by Reuters.

Meanwhile, on the data front, New Zealand’s unemployment rate was reported to have risen to 4.8% in the third quarter of 2024 from 4.6% in Q2. It has been the highest jobless rate since the fourth quarter of 2020.

As of 8:32 GMT on Wednesday the NZD/USD currency pair was losing 1.01% to trade at 0.5944.