The dollar fell to its lowest annual

The dollar fell on Friday to one-year lows against a basket of currencies, because of continuing concerns about its future value back to cloud the short-term technical picture, preventing a brake on sales of the greenback.

The dollar index, which measures its value against six major currencies, headed for its weekly fall deeper in nearly four months and the euro headed for its biggest weekly gain in the same period, after reaching the maximum of 2009 of 1 , $ 4627.

Strengthening China's economic data also fed the hopes of global recovery, which tempts investors to exit the dollar to move to riskier currencies.

On Friday, an official with the U.S. Treasury said it makes sense that China diversify its huge foreign reserves, which, at least marginally, fueled the feeling pessimistic about the dollar strengthened this week.

"It does not help the dollar, but he (the official) ties him to the idea of the creation of new reserve currencies, which, as we know, take a long time," said Paul Mackel, currency strategist at HSBC in London.

David Dollar, emissary for economic and financial affairs of the U.S. Treasury in China, said that greater diversification of China's international reserves, and the internationalization of the yuan, are meaningless.

"The general theme is that China has a huge amount of reserves and diversify makes some sense" these reservations, Dollar said at a meeting of World Economic Forum in the Chinese city of Dalian.

"It's healthy to have a wide variety of different types of reserve currencies," he added. The dollar index was down 0.25 percent to 76.63 daily, even after falling earlier to 76.511, its lowest since September 2008.

The euro rose 0.2 percent on the day at $ 1.4600, accumulating a rise of 2 percent in the week. The dollar declined by 0.9 percent a day against the yen at 90.90 units from Japan, after earlier falling to its lowest in seven months of 90.69 yen according to Reuters data.