Dollar Falls to Record Low on China's Plans to Diversify ReservesSubmitted by Michael Nystrom on Wed, 11/07/2007 - 01:20
It is what Dr. Paul has been saying all along. Here is the news from Bloomberg:
Nov. 7 (Bloomberg) -- The dollar slid to record lows against the euro and the Canadian dollar after a Chinese government adviser said plans to diversify foreign-exchange reserves will involve buying better-performing currencies.
The currency slumped to a 26-year low against the pound and a 23-year low against the Australian dollar. Cheng Siwei, vice chairman of China's National People's Congress, told a conference in Beijing the country ``will favor stronger currencies'' when adjusting its $1.43 trillion of reserves. He later added that doesn't mean buying more euros.
"We're likely to see further pressure on the dollar,'" said Thomas Harr, senior foreign exchange strategist in Singapore at Standard Chartered Plc, a U.K. bank that makes most of its profit in Asia. "The potential for diversification is quite big. This a structurally negative story for the dollar."