After falling broadly late last week, the U.S dollar regained some ground on Monday as the market is watching cautiously to see if China will keep making comments on the reserve currency. China’s central bank did not mention the Dollar by name on Friday but said it was a serious defect in the international monetary system that one currency should dominate.
Debate about an alternative international currency has heated up in recent months and central bankers gathering in Basel this weekend also discussed the dollar’s role. Still, the dollar will keep its role as reserve currency, as China is unlikely to change the composition of its foreign currency reserves any time soon. That’s dollar positive analysts said.
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