Dollar Dips as Markets React to Treasury Secretary Pick

The U.S. dollar weakened as investors reacted to the appointment of Scott Bessent as U.S. Treasury secretary, which affected bond yields. Despite Bessent's support for a strong dollar, fluctuations in currency rates were observed. Euro and pound showed varying movements, with Bitcoin experiencing a slight decrease.

The dollar saw a reduction in its recent rally on Monday, influenced by investor sentiment towards the appointment of Scott Bessent as U.S. Treasury secretary. This change prompted a dip in bond yields, which in turn affected the dollar's rate advantage.

Bessent, known for his support of a strong dollar and tariffs, was anticipated to reassure the bond market as an experienced Wall Street figure and fiscal conservative. However, the dollar's current weakening seems at odds with his pro-dollar stance, according to financial experts.

Market movements extended beyond the dollar, with the euro gaining ground and the pound lifting from recent lows, despite broader economic challenges in Europe. Bitcoin faced minor profit-taking, paralleling regulatory expectations under the Trump administration.

(With inputs from agencies.)