The dollar continued its recent decline Thursday as currency traders, along with bond and stock investors, confirmed a view that the Federal Reserve will not raise the fed funds rate on Aug. 8. Gains or losses are theoretically limitless for stocks and bonds. But for the dollar, range-bound is still par for the course. While the greenback is likely to continue to decline if data flows in to support expectations for a weak economy and a Fed pause, the dynamics of the global economy will only let the U.S. dollar fall so far. On Thursday, the dollar traded as low as 115.32, and was at 115.76 late Thursday vs. 115.88 Wednesday. The euro traded as high as 1.2769 early in the session, a level not seen since July 12, according to T.J. Marta, senior currency strategist at RBC Capital Markets. But the euro ended the day down 0.06% at 1.2699. Currency trading, like the path of the global economy, is largely in the hands of central banks. Almost daily, "Asian officials" buy or sell assets to keep the U.S. dollar within a trading range relative to its major rivals, currency traders say. On Thursday, traders said the euro's gains were capped when an "Asian official" -- most likely the Chinese central bank or an agent thereof -- came in and sold some euro assets. The reason for the alleged interference? The much-debated global imbalances. China has taken the fruits of its massive export economy and amassed huge amounts of U.S. assets, which it stores in its reserves. China can't let the dollar weaken too much, or its dollar-heavy reserve portfolio would become massively undervalued. On Thursday, the "Asian official" couldn't let the euro get too strong, as that would drive down the dollar, which, being pegged to the Chinese yuan, would weaken China's reserves too much.