What Trump's pick for Treasury secretary could mean for global markets

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 106.69 on Monday, paring some of its recent gains after a remarkable rally since late September.

The euro was a top performer, rising around 1% to trade at $1.0517 at 2:25 p.m. London time. The 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, founder of Connecticut-based investment firm Key Square Group, as a "safe pair of hands," a well-known market participant and a more moderate pick compared with some of his rivals.

It is expected the 62-year-old will push for Trump to consider a softer approach to tariffs, strip back regulation to boost growth and target a reduction in deficit spending.

"Trump's pick for Treasury Secretary has swelled investor sentiment further with stocks on Wall Street looking set for another flurry of gains," Susannah Streeter, head of money and markets at Hargreaves Lansdown, said in a research note.

"Hedge fund manager Scott Bessent's long career of navigating the twists and turns of markets, has boosted confidence about incoming pro-business policies and lifted hopes that any tariffs would be highly