The dollar relinquished a little of its recent gains on Monday as the pick for U.S. Treasury secretary seemed to reassure the bond market and pulled yields lower, shaving some of the currency's rate advantage.
Yields on 10-year Treasuries slipped to 4.351%, from 4.412% late Friday, as President-elect Donald Trump's choice of fund manager Scott Bessent was welcomed by the bond market as an old Wall Street hand and a fiscal conservative.
However, Bessent has also been openly in favour of a strong dollar and has supported tariffs, suggesting any pullback in the currency might be fleeting.
The index was last down 0.5% at 106.950, having hit a two-year peak of 108.090 on Friday.
The dollar dipped 0.4% on the Japanese yen to 154.11, and further away from its recent peak of 156.76.
Persons:
Treasuries, Donald Trump's, Scott Bessent, Bessent, Ray Attrill
Organizations:
U.S, Treasury, NAB