Dollar strength rooted in US credibility, policy certainty: Bessent

US Treasury Secretary Scott Bessent has underscored the dollar's enduring strength in global markets, linking its position as the world's reserve currency to fundamental factors including the credibility of American financial institutions and policy certainty.

Bessent pointed to increasing transaction volumes across international markets as evidence of sustained global confidence in the dollar. The currency's prominence in cross-border commerce and financial settlements reflects broader trust in the stability and governance of the US financial system, he indicated.

The treasury secretary's comments come amid ongoing scrutiny of currency markets and capital flows across Asia-Pacific and other regions. Policymakers and investors have closely monitored shifts in reserve currency dynamics and their implications for emerging markets and developing economies.

Bessent's remarks suggest the US administration views the dollar's reserve status as dependent on maintaining transparent, predictable policy frameworks rather than short-term market interventions. The treasury chief's position aligns with longstanding arguments that currency strength ultimately derives from institutional trust and economic fundamentals rather than isolated policy actions.

The comments reflect broader US efforts to reinforce confidence in American financial leadership amid evolving global economic conditions and competitive pressures from other major economies.