The dollar fell and US government bonds rallied after Donald Trump picked Scott Bessent to run the Treasury, a Wall Street veteran who investors expect will take the sting out of the administration’s more aggressive trade and economic policy proposals.

Scott Bessent’s Treasury nomination boosts market optimism with stable yields, a stronger dollar, and a tempered outlook for gold.

Bessent has been openly in favor of a strong dollar and has supported tariffs, suggesting any pullback in the currency might be fleeting.