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.

US Treasuries have added to the gains spurred by the late-Friday announcement of Scott Bessent — a Wall Street veteran who investors expect will take the sting out of the administration’s more aggressive trade and economic policy proposals — as President-elect Donald Trump’s Treasury secretary choice.

The dollar backpedaled from two-year highs on Monday, while U.S. Treasury markets cheered Donald Trump's pick of hedge fund manager Scott Bessent for the U.S. Treasury secretary, trusting he will be more fiscally disciplined than investors had been fearing.