But I do think it brings into question the notion of how aggressive the Fed is going to need to be in terms of raising rates in 2006.

Ongoing fears of possible Bank of Japan intervention combined with renewed rumors of a possible downgrade of Japan's credit rating also weighed on the yen.

U.S. dollar pessimism continues to pervade the foreign exchange market.

He carries a lot of credibility in the marketplace. He's well respected in terms of his knowledge and his experience at the Fed. He is seen as very capable and credible that would prove reassuring in the near term,

It reaffirms the view that the U.S. economy remains on a solid growth track.

The risk would have been coming out with someone the market doesn't know, or who is a monetary hawk.