The dollar surrendered a little of its recent gains on Monday as investors assumed the pick for U.S. Treasury secretary would reassure the bond market and pulled yields lower, shaving some of the dollar's rate advantage.

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.