Investing.com - The dollar softened against most major currencies on Monday after former U.S. Treasury Secretary Larry Summers withdrew his name from the list of potential replacements for Ben Bernanke as chairman of the Federal Reserve.
Summers was seen as more hawkish over other frontrunners including current Fed Vice Chair Janet Yellen, whom markets feel will keep policy loose to prioritize job creation over keeping inflation tightly nestled within comfort zones if appointed.
In U.S. trading on Monday, EUR/USD was up 0.29% at 1.3335.
Summers, viewed by many as President Barack Obama's first choice as head of the Fed, bowed out of the race over the weekend, which dampened expectations for a quicker end to monetary stimulus programs.
Elsewhere, the Fed will open a two-day monetary policy meeting on Tuesday, with many avoiding the dollar ahead of time amid uncertainty as to whether the U.S. central bank will announce plans to begin tapering its USD85 billion monthly bond-buying program, which weakens the dollar by driving down interest rates to spur recovery.
The dollar traded largely lower amid sentiments than even if the Fed does announce plans to scale back stimulus measures, it will do so at a very gradual pace, especially in wake of lackluster economic indicators.
The Federal Reserve Bank of New York reported earlier that its Empire State manufacturing index fell to a four-month low of 6.29 in September from 8.24 in August, defying analysts' calls for the index to rise to 9.20.
Separately, the Federal Reserve reported that U.S. industrial production advanced 0.4% in August after having been unchanged in July, in line with expectations.
Elsewhere, the greenback was down against the pound, with GBP/USD up 0.14% at 1.5900.
The dollar was down against the yen, with USD/JPY down 0.24% at 99.12, and down against the Swiss franc, with USD/CHF trading down 0.24% at 0.9274.
The dollar was down against its cousins in Canada, Australia and New Zealand, with USD/CAD down 0.29% at 1.0325, AUD/USD up 0.74% at 0.9314 and NZD/USD trading up 0.36% at 0.8163.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.30% at 81.43.
On Tuesday, the U.S. is to release data on consumer price inflation, though many investors will remain camped on the sidelines to await the Fed's decision on monetary policy on Wednesday.
Summers was seen as more hawkish over other frontrunners including current Fed Vice Chair Janet Yellen, whom markets feel will keep policy loose to prioritize job creation over keeping inflation tightly nestled within comfort zones if appointed.
In U.S. trading on Monday, EUR/USD was up 0.29% at 1.3335.
Summers, viewed by many as President Barack Obama's first choice as head of the Fed, bowed out of the race over the weekend, which dampened expectations for a quicker end to monetary stimulus programs.
Elsewhere, the Fed will open a two-day monetary policy meeting on Tuesday, with many avoiding the dollar ahead of time amid uncertainty as to whether the U.S. central bank will announce plans to begin tapering its USD85 billion monthly bond-buying program, which weakens the dollar by driving down interest rates to spur recovery.
The dollar traded largely lower amid sentiments than even if the Fed does announce plans to scale back stimulus measures, it will do so at a very gradual pace, especially in wake of lackluster economic indicators.
The Federal Reserve Bank of New York reported earlier that its Empire State manufacturing index fell to a four-month low of 6.29 in September from 8.24 in August, defying analysts' calls for the index to rise to 9.20.
Separately, the Federal Reserve reported that U.S. industrial production advanced 0.4% in August after having been unchanged in July, in line with expectations.
Elsewhere, the greenback was down against the pound, with GBP/USD up 0.14% at 1.5900.
The dollar was down against the yen, with USD/JPY down 0.24% at 99.12, and down against the Swiss franc, with USD/CHF trading down 0.24% at 0.9274.
The dollar was down against its cousins in Canada, Australia and New Zealand, with USD/CAD down 0.29% at 1.0325, AUD/USD up 0.74% at 0.9314 and NZD/USD trading up 0.36% at 0.8163.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.30% at 81.43.
On Tuesday, the U.S. is to release data on consumer price inflation, though many investors will remain camped on the sidelines to await the Fed's decision on monetary policy on Wednesday.