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[nimblebear]

Dollar slumps after U.S. announces trade sanctions PrintDisable live quotesRSSDigg itDel.icio.usBy Wanfeng Zhou Last Update: 11:28 AM ET Mar 30, 2007 NEW YORK (MarketWatch) -- The dollar abruptly changed course, falling sharply especially against the yen after the U.S. Commerce Department on Friday announced sanctions against China in connection with a dispute over paper subsidies. Secretary Carlos Gutierrez said the U.S. has the right to apply countervailing duties to Chinese paper imports, which he said threaten U.S. products. "We haven't seen the exact percentages yet, but this represents a 20-year break in U.S. trade policy and potentially a watershed in US/Chinese trade relations. The obvious impact is going to be felt in dollar/yen which is already collapsing," said Brian Dolan, director of research at Forex.com. The dollar was last down 0.4% at 117.61 yen, while the euro was up 0.3% at $1.3362. (Got gold?)

[Cirrus]

I liquidated some of my China holdings which were not especially sizeable (except CEO and YZC). Sold CHN, GCG, some FMCN some CHCG and some CSCT). I'll wait to see how China digests this news. It could be an extreme reaction in either direction.