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US Dollar Drops on South Korea Plans to Shift Some US Currency Investments

The U.S. dollar declined in value compared to other major currencies Tuesday.

At one point, the dollar bought a bit more than 104 yen and it took just over $1.32 to buy a euro.

The drop followed reports that South Korea plans to switch more of its reserves from dollars to other currencies.

South Korea has the world's fourth largest currency reserves, and they have traditionally been held largely in dollar-denominated investments.

Some analysts say they are watching central banks in Europe and the Middle East to see if they take similar action, which would further reduce demand for the dollar and weaken its value.

Some information for this report provided by AFP, Bloomberg and Reuters.