Dollar Weakens After Announcement of New US Treasury Secretary.
The US dollar has decreased in value, and US Treasury bonds have risen in price following the appointment of Scott Bessent as Treasury Secretary, announced by newly elected President Donald Trump.
The dollar index fell by 0.6%, while the euro rose by the same amount against the US dollar.
Bessent's selection allows investors to consider the possibility of a softening of Trump's economic policies, who previously referred to tariffs as a 'maximalist' position.
US Treasury bonds, which had previously declined due to expected inflationary pressure, have regained their position, and the yield on 10-year bonds decreased.
Bessent's appointment and Trump's indications suggest a possible unrealization of inflationary elements in his policies and encourage hopes that he will achieve his goals through the dollar.
Investors also hope that Bessent will help contain the expansion of the fiscal deficit and implement Trump's economic program.
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