Will the euro become a reserve currency?

Due to dollar weakness, HSBC economists speculate whether the euro could become a rival reserve currency to dollar.

Since its inception as an idea, the architects of the euro dreamed that one day it would jostle with the US dollar as the world's reserve currency of choice. Now with the US running twin deficits, there are some who wonder whether the current administration is more focused on near term domestic considerations ie re-election than longer term strategic goals ie the dollar as a store of value. The dollar's bout of weakness notwithstanding the very recent rally has raised questions about its value as a reserve currency, for individuals and institutions alike.

HSBC's head of forex strategy, David Bloom thinks it is time to treat the question of the euro's...

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