media - Report fuels downturn of US dollar

An article in the newly established China Business News in Shanghai has confirmed longstanding rumors China is quietly selling off its US-dollar denominated foreign reserves. The continued fall of the US dollar against all other currencies is eroding China's foreign reserves and by selling it, China tries to limit the damage.
"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 in an interview to Reuters. "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."
Financial officials in the US have indicated they expect the fall of their currency to continue in 2005.
It is the first success of the newly established daily, in a blood media battle to become the major financial publication in China.