What Trump’s Treasury pick could mean for markets

Scott Bessent speaks at the National Conservative Conference in Washington D.C., Wednesday, July 10, 2024. Dominic Gwinn | Afp | Getty Images
Financial markets on Monday welcomed President-elect Donald Trump’s pick for U.S. Treasury secretary, with currencies across the globe rallying on hopes that hedge fund manager Scott Bessent can take some of the sting out of Trump’s more extreme economic views. The U.S. dollar index , which measures the greenback against six major currencies, fell 0.8% to 106.65 on Monday, paring some of its recent gains after a remarkable rally since late September. The euro was a top performer, rising over 1% to trade at $1.0522 at 1:30 p.m. London time. The Japanese yen, pound sterling and Antipodean currencies were also trading higher against the dollar. The moves come as global investors reacted to news from late Friday that Trump signaled his intention to nominate Bessent to lead one of the most influential roles in U.S. government. The Treasury Department has broad oversight of tax policy, public debt and international finance.
Strategists regard Bessent, the founder of Connecticut-based investment firm Key Square Group, as a