Sovereign Funds Looking to Cut Holdings in U.S. Dollar, FT Says

By Lenka Ponikelska

July 17 (Bloomberg) -- The world's largest sovereign wealth funds are looking to reduce their holdings of U.S. dollars in a sign of concern about the currency, the Financial Times said.

One large sovereign fund in the Gulf has cut back its dollar-denominated holdings to less than 60 percent from over 80 percent a year earlier, the newspaper reported, without saying where it obtained the information.

In China, the State Administration of Foreign Exchange has been talking to European private equity companies about putting billions of dollars into their latest funds, which are not dollar denominated, the FT reported, citing unidentified people familiar with the matter.

The Chinese agency declined to comment, the newspaper said.

To contact the reporter on this story: Lenka Ponikelska in London lponikelska1@bloomberg.net