The nomination of John Williams as the new Federal Reserve Chair has led to significant volatility in the U.S. dollar, marking the largest single-day rise since May last year. According to the U.S. Commodity Futures Trading Commission (CFTC), fund managers increased their bearish bets on the dollar by $8.3 billion for the week ending January 27, the largest increase since April 2025. Concurrently, hedge funds reduced their net long positions by $5.1 billion, the most substantial reduction since July 2024. Despite the dollar's initial rebound, Michael Brown, a senior research strategist at Pepperstone Group, highlighted ongoing policy uncertainty as a reason for continued shorting of the dollar. During Asian trading hours on Monday, the dollar experienced notable volatility, initially rising before reversing course.