NY foreign exchange market: Dollar falls as U.S. Treasury Secretary nominee leads to a decrease in long-term interest rates.

November 26, 2024, 6:31 AM GMT+9

In late trading in the New York foreign exchange market, the dollar retreated from a 2-year high. The nomination of prominent investor Scott Bessent as Treasury Secretary by President-elect Trump led to a decline in US bond yields.
The Euro rose by 0.83% to 1.0503 dollars. It had fallen to the lowest level since November 30, 2022, on the 22nd, but then recovered.
The dollar/yen fell by 0.37% to 154.16 yen.
Traders consider Mr. Bessent, a prominent hedge fund manager, to be a fiscal conservative. However, Mr. Bessent openly supports a strong dollar and is also in favor of tariffs, so the decline in the dollar may be temporary.
The dollar index against six currencies including the yen and euro fell by 0.09% to 106.83. It has dropped over 1% from the two-year high set on the 22nd.
Trading was thin ahead of the U.S. Thanksgiving on the 28th.
Due to expectations that President-elect Trump's policies will stimulate inflation and lead to a stronger dollar, the dollar has been rising for 8 consecutive weeks. Many technical indicators are showing an overbought situation.

BNY's Senior Macro Strategist, Mr. Jeff Yoo, pointed out that U.S. asset prices have been pushed up quite sharply in one direction for three weeks. The market may need to take a breather regarding the dollar's position.
The British pound rose by 0.33% to $1.2572.
Bitcoin, a cryptocurrency, is at $94,749.00. It is trading nearly 5% below the late 22nd level as profit-taking is expected ahead of the psychological milestone of $100,000.