Jim Sinclair’s Commentary

The technical dollar rally has no legs.

Asian trio to study dollar alternative: report
May 4, 2011, 7:59 a.m. EDT
By Chris Oliver, MarketWatch

HONG KONG (MarketWatch) — Officials from China, Japan and South Korea agreed on Wednesday to study a proposal to use their own currencies for regional trade settlement instead of the U.S. dollar, according to a Dow Jones Newswires report.

The report cited a joint communiqué issued in Hanoi.

Finance officials from the three big Asian economies said they were mindful of challenges arising from inflation, noting commodity prices were high while volatile capital inflows were also a concern.

They also agreed to study regional infrastructure financing and disaster risk insurance, the report said.

The finance ministers were meeting alongside an Asia Development Bank annual meeting held concurrently in Vietnam’s capital.

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