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 US dollar is weakening on the news.

Here's the dollar vs. the yen.