Wednesday, November 19, 2003

Euro Rises to $1.1953 Against the Dollar

Net capital inflows into the US were reported to have fallen from $50 billion in August to only $4.2 billion in September.

Moreover, foreigners engaged in net selling of "agency" debt sold by Freddie Mac and Fannie Mae for the first time since October 1998, getting rid of a net $3.2 billion after buying $8.9 billion last month.

Private accounts and central banks sold $6.3 billion worth of equities.

Private foreign accounts, private accounts and hedge funds, sold $2 billion of Treasuries in September and $6 billion of agency debt. Yet, central banks, with large foreign reserves, have not yet begun to sell.

The Treasury report stated in total, foreigners bought a net $5.6 billion of Treasuries in September, down from $25.1bn in August.

Interetingly, Japanese buying of US assets remains strong, with some net $20bn of debt and equity purchases.

  • Read the Story at the Financial Times