Reply #27: Dollar weakens on Sweden's reserve shift (away from dollar) [View All]

[UpInArms]

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B86D2BF38%2D012E%2D487E%2D94B6%2D4F192A4E1B20%7D&dist=newsfinder&symbol=&siteid=mktw

NEW YORK (MarketWatch) -- The dollar was lower across the board early Friday after the Swedish Central Bank said it had significantly reduced its holdings of dollars in its foreign exchange reserves. The Riksbank said it cut the share of dollar-denominated assets by 17% to 20% and boosted the euro's share by 13% to 50%. "Reserve diversification by central banks has been a key driver of dollar weakness this year and this news further serves to reinforce the notion that the greenback may be under more structural pressure going forward," said Boris Schlossberg, senior currency strategist at Forex Capital Markets, in a note. In early New York trading, the euro rose 0.4% to $1.2329, while the dollar was down 0.4% at 117.03 yen.