Lawrence Summers Exits – Dollar Falls

Treasury Secretary Lawrence Summers exited from the race for the Federal Reserve. His criticism of the quantitative easing strategy of the Fed led many to believe that if he was in charge there would be a more aggressive withdrawing from the stimulus plan. Now that he is out of the race the stimulus is likely to last longer. Such a stimulus tends to weaken a nation’s foreign exchange. This explains today’s fall of the dollar. It fell to a one month low. The Bloomberg U.S. Dollar Index tracks the dollar by measuring it to 10 leading global currencies. Today it fell 0.3 percent to 1,020.97 as of 5 p.m. in New York.