The surprise withdrawal of Federal Reserve Chairman candidate Lawrence Summers will likely give risk-on trades, such as battered emerging market currencies, a boost, analysts say.
"[Summers'] removal means Janet Yellen is a near certainty. Her dovish-ness will be highly supportive to emerging market currencies and you can already see that in early trade," said Evan Lucas, market strategist at IG. The rupee strengthened on the news in early Asian trade on Monday opening over 1 percent higher from Friday's levels.
Summers, who had been seen as President Barack Obama's preferred choice, officially withdrew his name for consideration to succeed Fed chair Ben Bernanke, on Sunday.