Investing.com - The U.S. dollar traded lower against most of its major rivals during Monday’s Asian news on news that former U.S. Treasury Secretary Larry Summers has withdrawn from consideration to be the next chairman of the Federal Reserve.
In Asian trading Monday, EUR/USD jumped 0.45% to USD1.3358. Riskier assets soared Monday in Asia Monday after various U.S. media agencies reported Summers informed President Barack Obama that he no longer wants to be considered for the Fed’s top post. There is speculation that Summers was aware that he would have difficulty being confirmed by the Senate even if nominated.
USD/JPY slid 0.45% to 98.91. In Japan last week, the government upgraded its view of the economy in its monthly economic report on Friday. In its September report, the government said Japan is approaching an end to deflation and said the economy was beginning to recover at a "moderate" pace.
GBP/USD climbed 0.38% to 1.5939 as riskier currencies got some relief on the Summers news. Traders are still anticipating that the Fed will formally announce tapering of its USD85 billion-per-month bond-buying program when it concludes its two-day meeting on Thursday.
That should boost the dollar, but for Monday, the Summers news is dominating the Asian session. Summers was seen in some circles as a controversial choice to lead the Fed and too close to Wall Street. Additionally, his monetary policy views are hawkish compared to Fed Vice Chairwoman Janet Yellen, the presumptive second choice.
USD/CHF fell 0.52% to 0.9248 while USD/CAD dipped 0.47% to 1.0307.
"Earlier today, I spoke with Larry Summers and accepted his decision to withdraw his name from consideration for Chairman of the Federal Reserve. Larry was a critical member of my team as we faced down the worst economic crisis since the Great Depression, and it was in no small part because of his expertise, wisdom, and leadership that we wrestled the economy back to growth and made the kind of progress we are seeing today," said the President in a statement released by the White House on Sunday.
AUD/USD surged 0.91% to 0.9331 while NZD/USD jumped 0.74% to 0.8195. The U.S. Dollar Index lost 0.51% to 81.26.
In Asian trading Monday, EUR/USD jumped 0.45% to USD1.3358. Riskier assets soared Monday in Asia Monday after various U.S. media agencies reported Summers informed President Barack Obama that he no longer wants to be considered for the Fed’s top post. There is speculation that Summers was aware that he would have difficulty being confirmed by the Senate even if nominated.
USD/JPY slid 0.45% to 98.91. In Japan last week, the government upgraded its view of the economy in its monthly economic report on Friday. In its September report, the government said Japan is approaching an end to deflation and said the economy was beginning to recover at a "moderate" pace.
GBP/USD climbed 0.38% to 1.5939 as riskier currencies got some relief on the Summers news. Traders are still anticipating that the Fed will formally announce tapering of its USD85 billion-per-month bond-buying program when it concludes its two-day meeting on Thursday.
That should boost the dollar, but for Monday, the Summers news is dominating the Asian session. Summers was seen in some circles as a controversial choice to lead the Fed and too close to Wall Street. Additionally, his monetary policy views are hawkish compared to Fed Vice Chairwoman Janet Yellen, the presumptive second choice.
USD/CHF fell 0.52% to 0.9248 while USD/CAD dipped 0.47% to 1.0307.
"Earlier today, I spoke with Larry Summers and accepted his decision to withdraw his name from consideration for Chairman of the Federal Reserve. Larry was a critical member of my team as we faced down the worst economic crisis since the Great Depression, and it was in no small part because of his expertise, wisdom, and leadership that we wrestled the economy back to growth and made the kind of progress we are seeing today," said the President in a statement released by the White House on Sunday.
AUD/USD surged 0.91% to 0.9331 while NZD/USD jumped 0.74% to 0.8195. The U.S. Dollar Index lost 0.51% to 81.26.