Monday, October 12, 2009

Is the dollar done as reserve currency? Banks shift to Euros & Yen. Investors to Aussie and loonies Greenback down

Dollar Reaches Breaking Point as Banks Shift Reserve

Oct. 12 (Bloomberg) -- Central banks flush with record reserves are increasingly snubbing dollars in favor of euros and yen, further pressuring the greenback after its biggest two- quarter rout in almost two decades.

Policy makers boosted foreign currency holdings by $413 billion last quarter, the most since at least 2003, to $7.3 trillion, according to data compiled by Bloomberg. Nations reporting currency breakdowns put 63 percent of the new cash into euros and yen in April, May and June, the latest Barclays Capital data show. That’s the highest percentage in any quarter with more than an $80 billion increase.

Click here to Watch Steve Forbes Discusses U.S. Dollar, Economic

Dollar Skeptics Buy Euro

Interview and discussions with Marvin Barth of the Tennenbaum Capital Partners. He talks about the dollar market. (Bloomberg News)