|
Dollar falls on report China cuts US bond holdings |
| Last Updated(Beijing
Time): 27 November 2004, 14:15 |
|
| The dollar has fallen to a record low against
the euro and a five-year low against the yen on reports that
China, the second-largest holder of US debt, had trimmed the
amount of US treasury bonds in its portfolio.
The China Business News quotes Yu Yongding, a member of the
central bank's monetary policy advisory committee, as saying
Beijing has cut the proportion of foreign exchange reserves held
in dollars.
Professor Yu is quoted as "revealing" that the rate of
increase of holdings of US government bonds had fallen and total
holdings were currently around US$180bn.
Financial markets reacted to the report. The euro
strengthened to a record $1.3330 against the dollar and was
trading at $1.3299 in morning trading in London, from $1.3269 in
New York on Thursday.
The greenback also weakened against the Japanese currency to
Y102.38.
Statistics from the US Treasury Department show Chinese
mainland holdings of treasury securities totalled US$174.7bn at
the end of September, up from US$172.3bn at the end of August.
Meanwhile, China's foreign exchange reserves rose from
US$496.2bn US dollars to US$514.5bn, suggesting a fall in the
proportion of reserves held in treasury bonds. |
|
|
|
