GLOBAL MARKETS-Dollar falls on China comments

[villager]

Source: Reuters

GLOBAL MARKETS-Dollar falls on China comments, stocks rebound

* Dollar falls broadly, at record low vs Swiss franc

* China official sees risks in holding "excessive" US assets

* European shares snap four-day losing streak

* Brent crude back above $114 on dollar weakness

By Emelia Sithole-Matarise

LONDON, June 7 (Reuters) - The U.S. dollar fell broadly on Tuesday, hurt by a warning from a Chinese official of the risks in holding huge dollar assets while European equities rebounded as investors picked up beaten-down shares.

The weaker dollar helped Brent crude oil prices rise back above $114 a barrel though gains were limited by expectations that oil cartel OPEC will raise its production targets this week and worries that an economic slowdown will erode demand.

The greenback hit a one-month low against the euro and a record low versus the Swiss franc after a Chinese foreign exchange official said the dollar would continue to weaken against other major currencies and warned of risks in holding "excessive" U.S. assets.

It slid 0.5 percent against a basket of major currencies to 73.556 .DXY, its lowest in a month, and plumbed 0.8328 Swiss francs CHF= on trading platform EBS -- a record low.

<snip>



Read more: http://www.reuters.com/article/2011/06/07/markets-global-idUSLDE7560NN20110607