Tuesday, February 22, 2005

Korea "rebalancing" out of Dollars

The dollar fell against the euro by more than a cent overnight after it became known that the Korean central bank is rebalancing its reserves away from the dollar and in favor of a basket of other currencies. Korea is the 5th largest US creditor, owning $69 billion of our US Treasury debt. That they've acknowledged selling dollars leads to a suspicion that others also have - and more will follow.

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