The dollar started this weeks session rallying against several main currencies after China stated that it may continue to be used as a main reserve currency, and that the Asian nation wont change its foreign currency reserves suddenly.
Guan Tao, deputy head of the international payment department at the Chinese State Administration of Foreign Exchange, wrote in Chinamoney magazine that the U.S. currency will remain as the main world reserve currency for an undetermined amount of time, pushing the greenback up against all 16 major traded currencies in the beginning of the week and lifting tensions brought up last week referred to the dollar losing its current reserve currency status. The yen aggravated its losses against the dollar as a report indicated that retail sales fell for the ninth month in a row, damping demand for the already weakened Japanese currency.
Analysts treat the dollar current reserve currency issue in a rather skeptical way, they affirm that it would be a very complicated process for China and other major nations to change their reserves suddenly and without causing unwanted impacts in the world financial system, and this skepticism is bullish for the greenback, providing some relative amount of safety for traders to be confident to maintain and purchase assets priced in dollar.
EUR/USD traded at 1.3999 as of 9:59 GMT falling from an opening price of 1.4065. USD/JPY rose from 95.15 to 95.47.
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