Organization: Bessent nominated by Trump, the dollar falls but may rise again before the end of the year

XTB Research Director Kathleen Brooks stated that the US dollar fell after President-elect Donald Trump announced he would nominate hedge fund manager Scott Bessent as Treasury Secretary. "Bessent is seen as an antidote to Trump's most extreme economic views," said Brooks. Bessent advocates for reducing government spending and is expected to advocate for a slow and steady approach to trade tariffs that could lead to inflation. According to Brooks, this could boost risk sentiment and reduce the flow of safe-haven funds into the dollar. However, due to the excellent performance of the US economy, any decline in the dollar will be limited. The dollar may still "tend upward before year-end, with any weakness potentially being used as a buying opportunity."