Flight To Safety Favour The US Financial Assets And Boosted Its Currency Vis-a-vis Other Reserve Currencies A flight to safety as a result of Europe’s sovereign debt crisis and prospects of a weakening euro has benefited the US financial assets and boosted its currency vis-a-vis other reserve currencies. Investors were further encouraged by signs of a sustained US economic recovery that have translated into a rebound in companies’ earnings and stock prices as well as the fact that the US policy normalisation will likely be ahead of the Euroland. As a result, purchases of US dollar long-term financial assets such as equities, notes and bonds by foreign investors jumped to a record high of US$140.5bn in March, more than double economists’ projections and after rising by US$47.1bn in February.
The World Economy... - 18/5/2010
No comments:
Post a Comment