Banque de France Governor Noyer says that while the US dollar is the world’s reserve currency but the euro plays a major role. A growing number of currencies could enjoy reserve status, Noyer says.
Typically, comments like these would undermine the dollar but with the market in risk-aversion mode today, the comments are unlikely to have much lasting impact. EUR/USD sits above 1.42 largely as a result of its growing status as a reserve currency, so this is not exactly news to the market. EUR/USD trades at 1.4220.
