FOREX-Dollar up as S.Korea, Japan reassure on reserves

[magellan]

TOKYO, Feb 23 (Reuters) - The dollar rebounded against the euro and the yen on Wednesday after South Korea said that long-term plans to diversify its foreign exchange reserves did not mean it would sell the U.S. currency.

The dollar's recovery gained momentum after a Japanese Finance Ministry official told Reuters that Japan had no plans to diversify its foreign exchange reserves -- the largest in the world at almost $850 billion -- by buying euros.

On Tuesday the dollar suffered its biggest one-day fall against major currencies since December as the market seized on reports South Korea's central bank planned to spread its $200 billion of reserves, the world's fourth largest, among a wider array of currencies.

The currency volatility prompted the Bank of Korea to clarify on Wednesday that its reserve diversification plans were not new and did not mean the central bank would soon sell dollars for other currencies.

more...http://sg.biz.yahoo.com/050223/3/3qsds.html

[Maple]

1. Forward and back

The world is slowly divesting itself of US dollars.

In 'all innocence' of course. Especially when caught.

But bit by bit, little by little, there is a move afoot for a soft landing, but the US currency will be gone.

[nadinbrzezinski]

2. Don't think ours will be a soft landing though

[Maple]

3. No

unfortunately not.

[cthrumatrix]

4. the WH called them ....reminded them of "nukes" at their neighbors