U.S. dollar losing luster as reserve currency

[UpInArms]

Source: Reuters

WASHINGTON, Sept 12 (Reuters) - The U.S. dollar's dominant position as the world's reserve currency is gradually diminishing as the euro becomes increasingly popular, the International Monetary Fund said on Wednesday.

According to data reported to the IMF by industrial and developing countries, the trend toward the euro is specially evident among the developing, or nonindustrial, nations.

"Nonindustrial countries hold some 30 percent of their reserve assets in euros and 60 percent in in dollars (as of December 2006), compared with 19 percent and 70 percent, respectively, six years ago," the IMF said.

The dollar was at a record low against the euro on Wednesday amid concern about the U.S. economy's strength and a growing feeling that U.S. official interest rates will fall.

Read more: http://www.reuters.com/article/bondsNews/idUSN1228283820070912