Bertie
11-11-2006, 04:40 PM
The dollar fell to its lowest in more than two months against the euro after People's Bank of China Governor Zhou Xiaochuan said the country will keep diversifying its foreign-exchange reserves away from the U.S. currency.
The dollar slid against all 16 of the most-actively traded currencies Bloomberg tracks after Zhou said China will "stick to the existing policy" of reducing the share of U.S. assets it holds. European Central Bank President Jean-Claude Trichet and Bank of Japan chief Toshihiko Fukui suggested this week they will raise interest rates, adding to the allure of their currencies.
"We saw the comments from the People's Bank of China," said Niels From, a currency strategist at Dresdner Kleinwort in Frankfurt. "The talk about central bank diversification gives a final push this week for the dollar to go weaker."
http://www.bloomberg.com/apps/news?pid=20601103&sid=amnS81FZ8vbA&refer=us
The dollar slid against all 16 of the most-actively traded currencies Bloomberg tracks after Zhou said China will "stick to the existing policy" of reducing the share of U.S. assets it holds. European Central Bank President Jean-Claude Trichet and Bank of Japan chief Toshihiko Fukui suggested this week they will raise interest rates, adding to the allure of their currencies.
"We saw the comments from the People's Bank of China," said Niels From, a currency strategist at Dresdner Kleinwort in Frankfurt. "The talk about central bank diversification gives a final push this week for the dollar to go weaker."
http://www.bloomberg.com/apps/news?pid=20601103&sid=amnS81FZ8vbA&refer=us