USD falls at Korean comments

Story link: USD falls at Korean comments

Comments from the South Korean Central Bank sent the US dollar into its single biggest slide for four months.

The bank had openly suggested that it was holding back on dollar purchases in lieu of alternative currencies, such as the euro, and Canadian and Australian dollars.

The comments were poorly perceived by traders who have so far failed to rally the currency, despite generally favourable economic conditions in the USA.

Later asssurances by Japan and South Korea that they would continue to hold their dollar reserves was better received, and the dollar recovered on some of its losses.

However, the comments come at a time when central banks are increasingly moving to alternative currency reserves, with the euro already a particular favourite among oil producing countries.