European Central banks shift reserves away from US
The Financial Times is reporting that:
banks are shifting reserves away from the US and towards the eurozone
in a move that looks set to deepen the Bush administration's
difficulties in financing its ballooning current account deficit.
In actions likely to undermine the dollar's value on currency markets,
70 per cent of central bank reserve managers said they had increased
their exposure to the euro over the past two years. The majority
thought eurozone money and debt markets were as attractive a
destination for investment as the US.