November 7, 2007 / 9:45 AM / 12 years ago

GLOBAL MARKETS-Dollar fall hits stocks, boosts gold

LONDON, Nov 7 (Reuters) - European stocks erased gains and gold jumped to a 28-year high of $845 an ounce on Wednesday as the dollar hit new record lows of $1.47 to the euro and $2.10 to the British pound.

Speculation that the Chinese government may further diversify its currency reserves was a specific reason for Wednesday’s dollar weakening, but the currency has been under pressure for weeks.

“The flight out of the dollar has been relentless,” said Kamal Sharma, currency strategist at Bank of America.

The pan-European FTSEurofirst 300 index .FTEU3 was down 0.3 percent after earlier rising as much as 0.6 percent. (Reporting by Jeremy Gaunt)

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