The greenback declined against major peers with the Aussie and euro leading gains, while Bitcoin fell below US$97,000 before paring losses.

Australian shares and US equity futures climbed, with futures in Japan also pointing to an early gain. Contracts in Hong Kong were steady.

The moves indicate elements of the so-called Trump Trade are cooling after the incoming president named Bessent, who runs macro hedge fund Key Square Group, to oversee the US government debt market, tax collection and economic sanctions.

While Bessent indicated he’ll back Trump’s tariff and tax cut plans, investors expect he will prioritise economic and market stability over scoring political points.

“He brings this sense of almost gradualism to the administration as opposed to taking a big bang approach to making big policy changes,” Brian Jacobsen, chief economist at Annex Wealth Management, said on Bloomberg TV.

Markets may be relieved that the pick signals “an ‘America First’ kind of administration but not an ‘America Exclusively’ kind of administration,” he said.

Bessent’s nomination may ease some concerns over Trump’s impact on other countries’ economies and currencies around the world.

The dollar has now climbed for eight straight weeks, the longest advance in more than a year, as traders continued to price Trump’s fiscal policies including sweeping trade tariffs and persistent economic growth.

The euro fell to a two-year low and the Swiss franc slid to the weakest against the greenback since July as speculative investors turned the most bullish on the dollar since late June.

US stocks rose on Friday, with the S&P 500 gaining 0.4% as beneficiaries of the incoming administration’s looser regulation and business-friendly stance climbed. The Treasury curve flattened, with yields on 2-year notes climbing after strong US business activity data.

Benchmark 10-year yields edged lower. Australia’s equivalent fell six basis points in early Monday trading.