“D’you reckon the euro could soon become the main reserve currency?” That question was put to me by Frank Hemsley, who’s been following the dollar’s demise for a while now.

I’ll let Frank take up the story:

“The dollar’s under massive pressure again today, heading towards $1.60 to the euro. It looks like this week will see the greenback’s biggest weekly fall in a month against the euro, as traders keep on betting that the Fed will again cut rates in the hope of averting a recession. The dollar’s now down 8% so far against the European currency this year.”

Frank expects this decline to continue in the months ahead as companies and countries around the globe keep on losing faith. The euro already outweighs the dollar in terms of international corporate bonds issued and more and more emerging markets companies are looking away from New York to Europe for new listings.

As a new report from the McKinsey Global Institute points out, it might not be long before the once mighty dollar loses its “global reserve currency” crown to the euro.

In the meantime, Frank recommends keeping an eye on the good old Swiss franc as another great way to play the death of the dollar, as international capital flows into a country so far untainted by troubles in the mortgage and derivatives markets.

Manraaj also reckons the dollar’s days are severely numbered.

“China is now asking that its exports be paid for in euros, yen or the Chinese yuan,” he tells me.

Another man who’s bullish on China is our small-cap expert Tom Bulford. Tom’s spent a lot of time in China, and provides an interesting insight into the culture:

“The people that the Chinese admire are not blonde-haired bimbos with breast implants,” he says. “They are not third-rate television presenters. They are not overpaid footballers or ego-rich politicians. They are people who make lots of money. They are successful businessmen.”

Tom tells me the Chinese are gearing up for their very own tech boom, as the world’s most populous nation gets wired up. He’s very excited for one company’s prospects in particular. I don’t have the full details yet, but I understand it’s a software company looking to clean up as China’s small and medium sized business clamour for IT solutions. I’ll prize some info out of Tom and let you know more next week.