The dollar has gained as traders ramped up bets on Donald Trump winning the US presidential race after the attempt on his life at the weekend.

The US currency has risen 0.1pc versus the pound to $1.298 and has made gains against all major G10 currencies under so-called “Trump trades”.

US Treasury bond yields - a proxy for US government borrowing costs - also rose after the assassination attempt.

It comes as online betting site PredictIT has a Republican win at 66 cents, from 60 cents on Friday, with the Democrats at 38 cents. The current odds indicate that Republicans are twice as likely to win the election as Democrats.

Markets expect a Trump presidency to mean looser fiscal policy and higher tariffs on overseas goods.

Charu Chanana, market strategist at Saxo Capital Markets, said:

“With markets pricing in a greater possibility of Trump 2.0, the US dollar will likely get some tailwinds while the Mexican peso and Chinese yuan could suffer.”

 “Trump trades could be back in focus.” 

Jack Ablin, chief investment officer at Cresset Capital, said the attack had enhanced the former president’s “reputation for strength”.

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