November 7, 2007 (LPAC)--The U.S. dollar is "losing its status as the world currency," Xu Jian, a vice director of China's central bank, was quoted as telling a conference Nov. 6 in Beijing. China will further diversify some of its $1.33 trillion of foreign-exchange reserves, the world's largest, suggested Cheng Siwei, vice chairman of China's National People's Congress. "We will favor stronger currencies over weaker ones, and will readjust according," he said at the same Nov. 6 conference.

For this, and reasons of disastrous U.S. financial and economic policy, the value of the dollar has continued its drop today against both commodities--oil and gold making new long tern highs--and other currencies, falling .9% against the Euro to $1.47, and 1.2% against the Yen, which was 113.26/dollar as of noon Wednesday. The currency drops were the biggest since September for the dollar.

Chinese investors have already cut their holdings of U.S. Treasuries by 5% to $400 billion in the five months to August, according to Bloomberg News.

The pound sterling hit $2.10 in trading in London, the highest level since the early Thatcher era, the Telegraph reported. The U.S. dollar was also down against 14 of the world's 16 biggest currencies, falling to the lowest since the 1950s against the Canadian dollar, reaching a new record against the euro, and its weakest in more than 20 years against the Australian dollar.