24 April 2006, 16:39  Euro momentum bulds

The euro got a boost as yet another central bank said it was shifting reserves away from the dollar. Qatar's central bank said on Sunday it had been buying euros in the foreign exchange market and could keep building its holdings of the European currency until they make up 40 percent of reserves. Last week Sweden's central bank, the Riksbank, said it had cut the share of dollars in its $21 billion of foreign exchange reserves in favour of the euro. "We are seeing a dollar bearish move unfolding. The reserve story will support the euro from all angles," said Ian Stannard, currency strategist at BNP Paribas. Also, Russia will be able to start investing its rouble-denominated oil stability fund in top-rated government securities, dollars, euros and pounds after Prime Minister Mikhail Fradkov signed a law on investment rules, Finance Minister Alexei Kudrin told Reuters.

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