Get ready for it:

Earlier this week, the Treasury Department released figures showing robust purchases of government securities by foreigners. It was reported thustly:

Official figures from the US Treasury showed that foreign capital flows were up sharply in January as overseas investors bought more stocks, and central banks increased their purchases of Treasury bonds and notes.

But wait! There's more: (emp add)

However, Kathy Lien, chief fundamental analyst at Forex Capital Markets, said the report also appeared to indicate liquidations of dollar holdings by some Asian central banks. Fears about possible Asian bank sales of dollar-based assets have put pressure on the US currency in recent months.

Some 75 percent of the net flows into US treasuries originated from non-central bank flows -- most likely from hedge funds or hot money -- totaling 22.7 billion dollars, said Ashraf Laidi, chief currency analyst at MG Financial Group. Hot money can flow out just as quickly, Laidi said.

posted by Quiddity at 3/16/2005 06:32:00 AM