US Dollar Instantly Weakens On News Of Larry Summers Withdrawing From Fed Chair Consideration

The big news right now is that Larry Summers is withdrawing his name from candidacy for Fed Chair.

Summers withdrew from consideration in a letter to President Obama citing the likely acrimonious nature of any Senate nominating process.

Of the candidates to replace Bernanke, Summers was seen as the most “hawkish”, meaning not inclined to use monetary stimulus to boost the economy.

With Summers out, the likely next chief (perhaps Yellen) would be relatively more dovish, and as such the U.S. dollar is weakening on the news.

Here’s the dollar vs. the yen.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at