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The U.S. Dollar’s Dominance Is Being Stealthily Eroded

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Yen Falls to Six-Year Low as Policy Divergence Seen Widening

The dollar’s share of global reserve currencies has been in steady decline over the past 20 years as central banks turn to nontraditional currencies, including the renminbi, to diversify their holdings.

Reserve managers have moved out of dollars in two directions, with one quarter headed into the renminbi and three quarters into currencies of smaller countries that have traditionally played a limited role as reserve assets.