TOKYO (Reuters) - The dollar fell to a record low against the euro on Friday and a four-year low versus the yen as traders seized on a report that China has pared down its U.S. Treasury bond holdings.
The report in Shanghai-based China Business News quoted a member of the Chinese central bank's monetary policy committee as saying the country had trimmed its Treasuries in foreign exchange reserves to $180 billion, trying to minimize losses from a falling dollar.
While skeptical of the report, market players still jumped on it as more proof the dollar's sharp slide is a long way from over, with no sign of central banks standing in the way.
"I think the China story's going to have some legs," said Luke Waddington, head of forex trading at Royal Bank of Scotland in Tokyo.
"People don't really need any reasons to sell the dollar. If they are given a reason it's just putting petrol on the fire."
The dollar fell to a record low against the euro of around $1.3330. Against the yen, the dollar fell to its lowest level since March 2000 at 102.15 yen, though a prominent electronic platform had quoted it at 102.01 yen.
Let's hope it's just a rumour