Forex Blog: Currency Trading News & Analysis.

November 16th 2005

Foreigners buying US assets boost USD

In September, foreigners collectively purchased $110 Billion in US assets, which represents a monthly record. Economists had expected net foreign purchases to total only $70 Billion, based on the logic that an appreciating USD would deter foreign investment. Fortunately, it seems members of OPEC and Asian exporters continue to reinvest their trade surpluses into US denominated assets. Dollar bulls have drawn support from the news, using it as evidence that foreigners are nowhere near tired of owning US assets. Bloomberg News reports:

“This number is going to add to the dollar’s upward momentum,” said the head of global currency strategy at RBC Capital Markets Ltd. in London. “The dollar is benefiting from increased risk appetite among foreign investors, particularly for equities.”

Read More: Dollar Rises as Foreign Buying of U.S. Assets Surges to Record

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Posted by Adam Kritzer | in Investing & Trading, US Dollar | No Comments »

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