Dollar Drops as China Repeats Call for New Reserve Currency
June 26, 2009 by admin · Leave a Comment
The dollar fell against most of its major counterparts after China repeated its call for a supranational currency “delinked” from sovereign nations.
The greenback headed for its biggest weekly loss against the euro in four weeks after the People’s Bank of China said the International Monetary Fund should manage more of members’ foreign-exchange reserves. A rally in Treasuries this week pushed the yield on the benchmark 10-year note down the most since December, lowering expected returns.
“The dollar’s status as a reserve currency is being questioned,” said Benedikt Germanier, a foreign-exchange strategist in Stamford, Connecticut, at UBS AG, the second- largest currency trader. Read more…
