Published by Zeb BhamChina is eyeing the euro and the yen as greater targets for its foreign exchange reserves, moving away from the US.Despite a traditional preference for the US dollar, the country appears to be taking steps to diversity its foreign exchange options, Bloomberg reports.The news provider notes that China has been buying increasing amounts of the two currencies, indicating continued confidence.Yu Yongding, a former adviser to the People's Bank of China, told the news agency that diversification "should be a basic principle"."We didn't sell any European bonds or assets. Instead, we bought quite a lot," he said.The move to buy more currencies away from the dollar could make it harder for the greenback to recover from recent drops, the news agency reports.Ongoing concerns about the rate of growth in the US economy and the amount of time it will take to overcome recession have affected the currency in recent forex trading.For more information on foreign exchange treasury services and risk management, visit our Corporate FX site