Dollar falls towards 5-mth low on US debt worries

From Reuters.com

The dollar fell towards a five-month low against a basket of major currencies on Friday as signs the global recession may have passed its worst and concern about ballooning U.S. government debt prompted investors to sell the safe-haven currency.

The dollar was under pressure again a day after strong U.S. durable goods data reduced the need for investors to hold the world's most liquid currency. [ID:nN28317740]

The greenback extended losses yesterday on worries about whether the United States could keep attracting enough funds to finance its programmes to support the financial industry and stimulate the economy.

South Korea's National Pension Service (NPS), which is expected to manage 432 trillion won ($343.7 billion) by the end of 2014, would reduce its exposure to equities and U.S. bonds, its overseeing ministry said on Friday. [ID:nSEO14390]

"The main focal point in the forex market continues to be the U.S. Treasury market," said a senior trader at a big Japanese bank. "Given its huge size, people just cannot take their mind off the possible impact the market could have on exchange rates and share prices if things get ugly."