Former Fed Boss Says Euro Could Replace U.S. Dollar as [View All]

[katty]

AP
more: http://biz.yahoo.com/ap/070917/germany_greenspan_euro.html?.v=1

Greenspan: Euro Gains As Reserve Choice
Monday September 17, 8:07 am ET
Report: Former Fed Boss Says Euro Could Replace U.S. Dollar As Favored Reserve Currency


FRANKFURT, Germany (AP) -- Former U.S. Federal Reserve chairman Alan Greenspan said it is possible that the euro could replace the U.S. dollar as the reserve currency of choice.
According to an advance copy of an interview to be published in Thursday's edition of the German magazine Stern, Greenspan said that the dollar is still slightly ahead in its use as a reserve currency, but added that "it doesn't have all that much of an advantage" anymore.


The euro has been soaring against the U.S. currency in recent weeks, hitting all-time high of $1.3927 last week as the dollar has fallen on turbulent market conditions stemming from the ongoing U.S. subprime crisis. The Fed meets this week and is expected to lower its benchmark interest rate from the current 5.25 percent.