Qatar gov't fund has cut dlr exposure by half-PM

DUBAI, Oct 2 (Reuters) - Qatar's $50 billion sovereign wealth fund has cut its exposure to the dollar by more than half to around 40 percent of its portfolio in the past two years, the country's prime minister said in an interview aired on Tuesday.

Around 40 percent of the Qatar Investment Authority's portfolio was invested in euros and another 20 percent in currencies including sterling, Prime Minister Sheikh Hamad bin Jassim bin Jabr al-Thani told CNBC television.

"Before we are almost 99 percent in dollars. Since two years we are 40 percent dollars," said Sheikh Hamad, who also heads the QIA.

"This is because all our income from oil and gas comes by dollars. So we need some other windows," he said, explaining the diversification policy. OPEC member Qatar has the world's third largest gas reserves.

Asked whether the QIA intended to reduce its exposure to the U.S. dollar further, Sheikh Hamad said "Not at the moment, no."

Last month, Kenneth Shen, the QIA's head of private equity said in Dubai it was diversifying away from the weakening U.S. dollar by investing more in Asia.

The QIA, which has offered to buy British supermarkets chain J. Sainsbury Plc (SBRY.L), is eyeing investments in countries such as Japan, China, South Korea and Vietnam, he said.

Sheikh Hamad also said the QIA wanted 40 percent of its assets in Asia.

Central banks in the Middle East, the world's largest oil-exporting region are reducing exposure to the dollar, which hit record lows against the euro EUR= and a basket of currencies .DXY on Monday.