The withdrawal of a prominent candidate from pursuit of the top job at the U.S. Federal Reserve tugged down the U.S. dollar on Monday, Bloomberg reports.
U.S. President Barack Obama accepted the withdrawal of former Treasury Secretary Lawrence Summers on Sunday, enhancing the candidacy of Vice Chair Janet Yellen to lead the Fed. She is believed to be more inclined toward monetary easing, yet additional candidates are likely to emerge to succeed Ben Bernanke.
"A change in the leadership at the Federal Reserve necessarily generates a degree of uncertainty about the future course of monetary policy," currency strategy global head Jens Nordvig with Nomura bank in New York told Reuters on Monday. "Of all the various options, Yellen implies the greatest degree of continuity, and hence the least amount of uncertainty."
Bloomberg reports the world's reserve currency endured losses of roughly 0.5 percent against two of its top rivals on Monday – the common currency of the European Union and the Japanese yen.
The U.S. Federal Reserve is convening two days of policy meetings beginning on Tuesday, which Reuters reports is likely to halt the monetary unit's losses.
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