The USD weakened further today as the market continued to be rattled by a report speculating that a possible replacement for US Treasury Secretary John Snow could favor a weaker greenback, dealers said.

Dealers pinned the blame for the currency’s weakness on an opinion piece in the Times in the UK, which said that President George W Bush had spent yesterday’s public holiday in the US with former commerce secretary Don Evans, fueling speculation that Evans may replace Snow.

The report said Evans fits in well with the US ‘political-industrial complex,’ which tends to favor a weaker currency that helps US exporters and puts pressure on foreigners to open their markets and loosen monetary policy.

‘This gave the dollar a weakish tone today,’ said Adrian Foster, a forex strategist at Dresdner Kleinwort Wasserstein.

SOURCE: AFX

JON’S COMMENT
Well, if just talking about it made the US dollar weaker today, imagine how it will be if this happen!