Donald Trump
US President-elect Donald Trump speaks during a press conference in Trump Tower, Manhattan, New York, US, January 11, 2017. Reuters/Shannon Stapleton

Donald Trump’s first press conference after winning presidential election in which he addressed his alleged Russian connection has caused the Australian dollar to surge by one US cent. Furthermore, it is expected to surge up to 78 US cents.

The AUD was trading around at 73.75 US cents before Trump’s press conference began. It surged to 74.72 US cents during his speech. This is reportedly the highest surge in the dollar almost after a month. Last highest mark was recorded on Dec. 14.

AMZ economists have predicted that the Australian dollar may rise even further. They have said that there is a potential of it to rise to 78 US cents. Last time it happened in April that AUD was trading above 78 US cents.

The global financial markets were hoping that Trump would speak about the fiscal policies including tax reforms and infrastructure spending. However, that did not happen and so they were disappointed. The surge in the price of Australian dollar reportedly happened because of uncertainty about his policies.

Westpac senior market strategist Imre Speizer said that Trump’s speech was not as market-friendly as it was in November. He said that a few references about making America great again were made. However, nothing about the fiscal policies was mentioned. Senior foreign-exchange and macro strategist Bipan Rai of Canadian Imperial Bank of Commerce said that the market did not get what it wanted.

Trump’s press conference mostly revolved around his alleged Russia connection, and according to the economists, no mention of tax reforms and policies is one of the reasons why Australian dollar surged. In the conference, Trump rubbished the news of Russia having “compromising material.” He labelled the reports about his lewd sexual acts in Moscow as “fake.”

Read More: Russia might use 'compromising material' against Donald Trump, reveals unverified documents