Kathleen Brooks, head of research at XTB, said the dollar fell as US president-elect Donald Trump announced he would nominate Scott Bescent, a hedge fund manager, to be Treasury secretary. "Bescent is seen as an antidote to Trump's most extreme economic views," said Mr. Brooks. Mr. Bescent, who advocates for less government spending, is expected to argue for a slow and steady approach to trade tariffs that could lead to inflation. That could boost risk sentiment and reduce safe-haven flows to the dollar, Mr. Brooks said. However, the dollar's decline will be limited due to the outperformance of the US economy. The dollar could still be "tilted to the upside by the end of the year and any weakness could be used as a buying opportunity".