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US Dollar Remains Steady After TIC Data

April 19, 2017
By Daisy Joseph
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The release of TIC data hasn’t helped the US dollar in the forex market. The inflow of capital and foreign investments shows that the global investors are now interested in US assets. Foreign investors purchased $53.4 billion US assets in February. The cross-border investment flows was $19.3 billion. The data is considered volatile by the experts.

The top global economies continue to face political tension which has increased the concern of the investors and traders. Even though the foreign trade partners have increased interest in the financial and physical assets of the USA, the policy makers are worried about sustaining the economy amidst global pressure.

Japan increased its US treasury holdings to $1.12 trillion in February from $12.6 billion. It is the highest holdings by Japan and it also means that the US market is more exposed. China too increased its holdings to $1.06 trillion from $8.6 billion. US equities, corporate debt and agency debt were purchased as assets by the other countries.

Treasuries is always considered as the key asset that represents the stability of the US economy. $13.5 billion net treasuries underwent divestiture by various foreign investors. Trump currently talks about unfair trade practices which affect the US economy. His talks on border taxes and specific trade tariffs have been abandoned. The decisions taken by the White House in terms of trade policies will have global ramification.