The US dollar extended its decline and hit a one-month low against a basket of currencies, as expectations of US interest rate cuts heated up after US President Trump hinted that Kevin Hassett might be nominated as the next chairman of the Federal Reserve. Dutch International Group analyst Chris Turner said in a report that Hassett's views are considered to be most consistent with those of Trump, who has called for interest rate cuts many times. The market's reaction to the news was that the dollar weakened, and short-term returns declined faster than long-term returns and risk assets. Turner said that this may have been the dominant theme in the market until the Federal Reserve made its decision on December 10. The DXY dollar index fell to 98.968.

The US dollar extended its decline and hit a one-month low against a basket of currencies, as expectations of US interest rate cuts heated up after US President Trump hinted that Kevin Hassett might be nominated as the next chairman of the Federal Reserve. Dutch International Group analyst Chris Turner said in a report that Hassett's views are considered to be most consistent with those of Trump, who has called for interest rate cuts many times. The market's reaction to the news was that the dollar weakened, and short-term returns declined faster than long-term returns and risk assets. Turner said that this may have been the dominant theme in the market until the Federal Reserve made its decision on December 10. The DXY dollar index fell to 98.968.