The dollar index (DXY00) on Monday fell by -0.70%. The dollar tumbled Monday after President-elect Trump picked Scott Bessent as the new US Treasury Secretary. Bessent is seen as a fiscal hawk and favors less government spending and more gradual tariffs, a negative factor for the dollar. Also, Bessent’s nomination eases concerns about Trump’s inflationary agenda, as he is expected to take a more gradual approach to policy. Monday’s rally in the S&P 500 to a new record also reduced liquidity demand for the dollar. The dollar extended its losses after today’s US economic news showed the Oct Chicago Fed national activity index fell more than expected to a 9-month low, and the Nov Dallas Fed manufacturing outlook rose less than expected.
The US Oct Chicago Fed national activity index fell -0.13 to a 9-month low of -0.40, weaker than expectations of no change at -0.28.
