The dollar fell on Monday, November 25, after the announcement of the appointment of Scott Bessent as US Treasury Secretary, a figure perceived as moderate by the markets, likely to curb the budget deficit instead of making it explode. Around 10:45 a.m. GMT (11:45 a.m. in Paris), the American currency eased 0.65% against the euro, to $1.0487, and fell 0.36% against the pound, to $1.2576.
Former employee of billionaire George Soros, scarecrow of part of the Republicans, who then launched his own investment company, Scott Bessent, appointed to the Treasury on Friday by Donald Trump, is known on Wall Street. This long-time close friend of the Trump family “is perceived as being in favor of growth and deficit reduction policies, and his appointment was positively received by the markets (stock markets, editor’s note), worried about the scale of the American budget deficit and the inflationary impact of the new customs tariffs” promised, summarizes Kit Juckes, from Société Générale.
Bitcoin approaches $100,000
This decision therefore acted as a “catalyst for a fall in (US) bond yields, a rise in stock indices and a weaker dollar” at the opening of the session, notes the analyst. The greenback has benefited so far from the president-elect’s program, which augured a widening deficit and an acceleration of inflation in the United States, likely to delay rate cuts by the Federal Reserve (Fed).
The dollar’s decline on Monday was more marked against the euro, against which it reached a two-year high last Friday due to disappointing activity in November in the euro zone. Forex traders will remain attentive to the first estimate of euro zone inflation for the month of November published on Friday. “These new figures may either reinforce expectations of a half-percentage point cut in the European Central Bank’s (ECB) key rate in December or call them into question, potentially giving a boost to the euro”indique Ipek Ozkardeskaya, of Swissquote Bank.
Before that, on Wednesday, the «minutes» from the Fed’s latest monetary meeting earlier this month, the PCE inflation index for October and third-quarter growth in the United States. For its part, bitcoin continues to play on the nerves of investors by coming close to the $100,000 level, in the wake of the election of a resolutely pro-crypto American president. After rising to $99,728.36 on Friday, it fell slightly on Monday around 10:45 a.m. to $98,390.44.
Here are 2 PAA related questions for the given news segment:
## World Today News: Dollar Dip and Bitcoin Surge
**Host:** Welcome back to World Today News. Today, we delve into the recent movements in the global financial markets, spurred by the appointment of Scott Bessent as US Treasury Secretary and the ongoing bitcoin rally. Joining us are two distinguished guests: [Guest 1 Name], a renowned financial analyst, and [Guest 2 Name], a leading expert in cryptocurrency markets.
**[Guest 1 Name], let’s start with the dollar’s decline following the announcement of Scott Bessent’s appointment. Can you elaborate on why markets reacted positively to this news and what implications this could have for the US economy?**
**[Guest 1 Name]:**
**[Possible response]:** The markets perceive Scott Bessent as a moderate figure, someone who prioritizes fiscal responsibility. This contrasts with the concerns some investors had about a potential surge in the budget deficit under a different appointee. Bessent’s history suggests a preference for policies that promote growth while keeping a lid on deficit spending. This signals stability and predictability to the markets, leading to a decrease in dollar demand.
**Host: Interesting perspective. [Guest 2 Name], you’ve been closely following the rise of bitcoin. Could you shed light on what’s driving this impressive rally towards the $100,000 mark, and what are the potential risks and rewards investors need to be aware of at this juncture?**
**[Guest 2 Name]:**
**[Possible response]: ** This bitcoin surge is a confluence of several factors. The election of a pro-crypto president has undoubtedly boosted investor confidence. The perception that mainstream institutions are increasingly accepting cryptocurrencies is further fueling the rally. However, it’s crucial to remember that the crypto market is inherently volatile. While significant gains can be made, there are also substantial risks involved. Investors need to proceed with caution, considering their risk tolerance and diversification strategies.
**Host: Thank you both for those insightful opening remarks. Let’s delve deeper into these topics.
**Thematic Section 1: The Impact of Political Appointees on Financial Markets**
**Host:** [Guest 1 Name], how impactful are political appointments, like that of the US Treasury Secretary, on the overall performance of financial markets? Can you provide historical examples where such appointments have significantly swayed market sentiment?
**Host:** [Guest 2 Name], do you see any parallels between the current political climate and
previous eras that have witnessed significant transformations in financial markets?
**Thematic Section 2: The Future of the Dollar and its Global Influence**
**Host:** [Guest 1 Name], given the current trends, what are your predictions for the trajectory of the US dollar in the coming months?
**Host:** [Guest 2 Name], how might the rise of cryptocurrencies like bitcoin challenge the dominance of traditional currencies like the US dollar in the long term?
**Thematic Section 3: Navigating Volatility in a Changing Financial Landscape**
**Host:** [Guest 1 Name], with the dollar weakening and global markets in flux, what advice would you give to individual investors trying to navigate this complex environment?
**Host:** [Guest 2 Name], what are some key considerations for investors looking to enter or expand their investments in the volatile world of cryptocurrency?
**Host:** We’re approaching our closing minutes. Thank you both for this enlightening conversation. To our viewers, stay tuned for more in-depth analysis of the ever-evolving financial landscape right here on World Today News.
