Dollar Hit By Chinese Comments

Shu-Ching Jean Chen and R.M. Schneiderman 11.10.06, 3:35 PM ET

These days, the currency markets turn to Chinese central bank governor, Zhou Xiaochuan, as much as Federal Reserve Chairman Ben Bernanke, for clues about the future of the dollar.

An apparently off-the-cuff comment from Zhou late on Thursday set off a round of selling pressure against the dollar. The Chinese central bank chief was quoted as saying that his institution has plans to diversify its assets into “many instruments,” presumably moving away from the dollar.