Reply #77: (MarketWatch) Dollar stumbles to new lows on call for China sales

[Roland99]

Dollar stumbles to new lows on call for China sales
Gold futures climb to nearly $850 an ounce; crude oil vaults above $98 a barrel

http://www.marketwatch.com/news/story/dollar-slumps-top-china-official/story.aspx?guid=%7B49785919%2D0D1E%2D4E6A%2DBF51%2DD1DD1D2A874E%7D

LONDON (MarketWatch) -- The U.S. dollar stumbled to new lows on Wednesday after a top Chinese official called for the country to shift more of its huge foreign exchange stockpiles out of the beleaguered greenback.

Cheng Siwei, vice chairman of the Standing Committee of the National People's Congress, was quoted by wire services as saying China should shift more of its $1.43 trillion of currency reserves into "stronger currencies," such as the euro, to offset "weak" currencies like the dollar.

He also said a rapid appreciation of the yuan is not necessarily the right move -- as Washington and increasingly Europe are requesting -- though Cheng insisted the country wasn't actively seeking a major trade surplus.

The reports sent the beleaguered dollar to new lows against the euro, with the shared currency surging as high as $1.4703 from $1.4559 late Tuesday.

Hold on to something tight, folks!