"The oil-exporting countries' central banks have been switching out of dollars mainly into euros, and Russia also plays an important role in this. That is, I think, at the bottom of the current weakness of the dollar," Soros told Reuters.

Speaking to delegates at the Jeddah Economic Forum in Saudi Arabia, the famous investor and political activist said that while he did not expect the dollar to continue to fall, the fate of the dollar could be tied to the price of oil.

Oil is now selling at about $50 a barrel, down from a high of $55.67 a barrel late last year.

"The higher the price of oil, the more the dollars there are to be switched to euros [so] the strength of oil will reinforce the weakness of the dollar," he told Reuters. "That is only one factor, but I think there is such a relationship."

Soros, a notorious currency speculator, also told the British news agency that the U.S. current account deficit could be financed at the current level of the dollar.

"There are willing holders of the dollar. There are the Asian countries that are happy to accumulate dollar balances in order to have an export surplus and a market for their dollars," he said.

Editor's note: