Dollar Drops This Week as China Says It Will Diversify Reserves (Daniel Kruger)

Created by : Francis Goodwin View profile

  By Daniel Kruger

  Nov. 11 (Bloomberg) -- The dollar declined this week, touching the lowest against the euro in more than two months, after China's central bank governor said the nation is diversifying its foreign-exchange reserves.

  The dollar weakened about 1 percent to $1.2841 per euro from $1.2718 on Nov. 3. The currency dropped as low as $1.2901 yesterday. The dollar fell to 117.62 yen from 118.01 a week ago.

  U.S. assets may comprise 72 percent of China's reserves, according to Miller Tabak & Co. in New York.

  Pacific Investment Management Co., manager of the world's biggest bond fund, said the dollar will fall as China's central bank cuts the share of U.S. assets in its reserves.

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