Dollar makes room for euro

Story link: Dollar makes room for euro

The Financial Times reported today that the euro was becoming the preferred choice of currency by the reserves managers at central banks.

This comes in the face of a weak dollar, which despite earlier rallies, continues to lose value on the world currency markets. There are real concerns of incurring losses when converting investment in the US Treaury back to local currency.

There have been moves by oil exporters in building euro reserves for nearly three years now, and investment continues - not least because the euro is seen as a strong and stable currency for continued speculation.