Dollar Slumps to Record on China's Plans to Diversify Reserves

[Twist_U_Up]

Source: Bloomberg.com

Nov. 7 (Bloomberg) -- The dollar fell the most since September against the currencies of its six biggest trading partners after Chinese officials signaled plans to diversify the nation's $1.43 trillion of foreign exchange reserves.

The dollar fell against all 16 of the most-active currencies, declining to the weakest versus the Canadian dollar since the end of a fixed exchange rate in 1950, a 26-year low against the pound and a 23-year low versus the Australian dollar. The New York Board of Trade's dollar index dropped to 75.21 today, the lowest since the gauge started in March 1973.

``Further weakening of the dollar is very likely,'' said Teis Knuthsen, the Copenhagen-based head of foreign-exchange, fixed-income and derivative research at Danske Bank A/S, the Nordic region's second-biggest lender. China may ``diversify out of dollar holdings.''

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``We will favor stronger currencies over weaker ones, and will readjust accordingly,'' Cheng Siwei, vice chairman of China's National People's Congress, told a conference in Beijing. The dollar is ``losing its status as the world currency,'' Xu Jian, a central bank vice director, said at the same meeting.

Read more: http://www.bloomberg.com/apps/news?pid=20601087&sid=alGVN031e30s&refer=home

[Mountainman]

1. Welcome to bush's world

[Deja Q]

2. As a world currency, we're losing. As the world's maker of deadly toxic crap,

China is clearly winning.

Their reputation will become their problem.

[Hydra]

3. It was SUCH a brilliant idea to offshore all those jobs, wasn't it?

Pretty soon we'll be the sweatshop workers getting paid $1 a day to make Nikes for people in the EU.

:puke:

[kestrel91316]

4. No, pretty soon we'll be the sweatshop workers getting paid $1 a day

to make Nikes for people in CHINA.

[Hydra]

5. Euros are the new gold

but you're right, we'll be making shoes and plastic palm trees for anyone who will give us cheap corn.

[NoFederales]

6. Does the damaged Dollar hurt American debt to China, or does it

screw up the Chinese? So much "awareness/exposure" on faulty Chinese products lately seems suspiciously unusual. When did it become popular to start trashing China?

NoFederales

[poverlay]

7. The damaged dollar hurts anyone who has some and China has clearly been the enemy since darth

and kindasleezy woke up after the end of the cold war and realized they didn't have anyone to blame/hate. You know repukes: they hate anything that hasn't been approved by pat robertson.