A widening U.S. current-account is always unfavorable for the dollar. That won't be a big issue while the U.S. receives actual capital flows. But investors are always worrying about potential sudden shifts. The dollar looks weak.
Yuji Kameoka
Related All the talk about U.S. current account deficits hurting the dollar has vanished from the markets. CARL WEINBERG It certainly looks as if the U.S. dollar may succumb to sell side flows this week. This should imply... PRASHANT NEWNAHA Uninspiring results in the core operations, combined with unfavorable exposure to the U.S. dollar ma... ANDREA HORAN The direction of the U.S. dollar: Since the economy shows signs of slowing, investors are worried th... ALEX TANG Demand is drying up a little for U.S. securities, so this doesn't bode well for the dollar. Sentimen... SHARADA SELVANATHAN If Japanese investors buy U.S. Treasuries, then they have to buy the dollar as well. The market expe... ANTJE PRAEFCKE Canada looks to be a buy not only against the U.S. dollar but the euro as well. JACK SPITZ What the current deficit does is make the dollar vulnerable. It means we could see a vicious cycle, ... LARA RHAME The dollar is drifting downwards. There is an inclination to sell dollars -- the current account def... DARAGH MAHER Some investors are worrying about the slowdown in the housing market, a key driver of the U.S. econo... TORU UMEMOTO The monetary policy of the United States has a major impact on global liquidity and capital flows an... HU JINTAO It's good for the U.S. to see a relatively weaker dollar, but it's not a good idea for the U.S. Trea... ASHRAF LAIDI The widening rate gap between the U.S. and HK in the later part of 2006 will likely be accompanied b... GEORGE LEUNG They saw the deficits widening, and saw no reason to think the dollar wouldn't drop. In fact, the U.... GERRY CELAYA Interest rate differentials continue in favor of the U.S. dollar and that is one of the big drivers.... HUGH WALSH Without fresh good news on the U.S., the current account worries come back to the fore so people wor... LEE FERRIDGE When the yen falls against the dollar it changes the appetite of Japanese investors for U.S. bonds. ... DAVID GOLDMAN The dollar is performing well across the board, and capital flows are still very much a factor, BOB LYNCH A stronger dollar increases U.S. dollar purchasing power. STEVE MNUCHIN If Japanese investors buy U.S. Treasuries, then they have to buy the dollar as well. ANTJE PRAEFCKE The market is wondering whether U.S. growth can maintain the current rate, and a weaker reading than... AKIFUMI UCHIDA Higher U.S. interest rates will continue to support the U.S. dollar in the near term. We're still lo... BESA DEDA The dollar's upward momentum is likely to accelerate on the payrolls figures. The widening U.S. rate... MINORU SHIOIRI We don't expect the U.S. dollar rally to be a long lasting thing. The bigger trend is still Canadian... MARIA JONES This is more a case of investors pouring money into the Japanese economy than a case of investors sc... CARL WEINBERG The U.S. dollar could be about to enter a more turbulent zone because of these factors. STEFANE MARION Friday's turmoil in global markets looks set to continue to exert a dominant force on the foreign ex... CRAIG FERGUSON There may be a period where attitudes might change, especially if the dollar remains strong and they... HART HODGES Also, with uncertainty about the direction of the U.S. economy, and a weaker dollar, that actually f... BARROS CONTI Also, with uncertainty about the direction of the U.S. economy, and a weaker dollar, that actually f... AMAURY DE BARROS CONTI This dollar rally is not over yet. The biggest investors are still putting their money in the U.S. a... BENEDIKT GERMANIER A continued decline in U.S. equity purchases will be a telling sign of foreign appetite for U.S. sec... JAMES MCCORMICK Worse-than-expected trade-deficit figures could be fertile ground for dollar selling. Amid the alrea... MASAKI FUKUI U.S. budget and current account deficits are very important contributors to an unbalanced global eco... LAWRENCE SUMMERS The implicit message is that the U.S. dollar needs to go down. CAMERON BAGRIE I am a bull on sterling versus the U.S. dollar. WARREN BUFFETT Technology has changed things, same as everywhere. But the economy has changed drastically. When Jam... DAMIAN MARLEY There is a big hangover from soft U.S. data we had yesterday which worked in the direction of dollar... DARAGH MAHER From an interest rate differential standpoint, that is positive for the dollar, but higher rates mig... HUGH WALSH Percentage margins don't matter. What matters always is dollar margins: the actual dollar amount... JEFF BEZOS Volatility has certainly reduced despite a widening current account deficit, but capital inflows hav... ADENAAN HARDIEN Cooling housing markets will have a negative impact on consumer spending and employment. The dollar ... YUJI KAMEOKA In general terms were are still in a $1.20/1.21 range for euro/dollar ... but the focus is moving aw... MICHAEL KLAWITTER The yield differential continues to favor the U.S. dollar. ANDREW BUSCH Were there to be good news from ISM or indeed good news from (U.S.) payrolls on Friday and the dolla... CHRIS TURNER The market is sensitive to structural factors at the moment and the current account deficit will be ... KAMAL SHARMA The news from the U.S. continues to come out encouraging for the dollar, IAN STANNARD U.S. markets are starting to worry about the earnings of multinational companies in the face of the ... ALEX WONG No man can add one dollar to his bank account by worrying. VASH YOUNG What will make you a star is in you SOTONYE ANGA Portfolio flows are very important for the Taiwan dollar. This support seems to have been removed an... BEN SIMPFENDORFER The U.S. may be keeping rates strong for the foreseeable future. It's a battle of yields and the dol... ENRICO CARUSO The sense over the last few days seems to be that the dollar is reasonably well supported. We have h... DARAGH MAHER The dollar will probably stay strong, as the U.S. economy is holding up. ETSUKO YAMASHITA U.S. dollar pessimism continues to pervade the foreign exchange market. ALEX BEUZELIN U.S. durable goods orders suggest the (U.S. Federal Reserve) is almost certain to raise interest rat... AKIFUMI UCHIDA If U.S. bonds seem rich to global (mainly Asian) investors in currency terms as the dollar appreciat... DAVID GOLDMAN The dollar is rallying as foreigners snapped up a larger-than-expected amount of U.S. assets. KATHY LIEN The news out of the U.S. the past few weeks is clearly dollar positive. JAMES MCCORMICK Wherever the capital inflows come from, it is clear that Iceland would not have been able to run so ... STEPHEN LEWIS This up leg should be quite strong because gold was previously regarded by many investors as 'just a... DAVID FULLER If they diversify from the U.S. dollar denominated assets, it would lower the value of the U.S. doll... CHRIS LOW Forecasts of parity (with the U.S. dollar) are multiplying faster than bunny rabbits in May. DOUGLAS PORTER The U.S. dollar is being held firm by short-term rate expectations and until there is some sign of v... ADAM MYERS There's some selling of the dollar on what appears to be a little weaker demand in the U.S. economy. JEFF GLADSTEIN We continue to show strong growth in profitability despite significant pressure caused by the streng... PHILIP KNIGHT The U.S. dollar is being held firm by short-term rate expectations and until there is some sign of v... ADAM MYERS We see continued strength in capital flows to private equity firms from institutional investors seek... WALTER KORTSCHAK And just remember, every dollar we spend on outsourcing is spent on U.S. goods or invested back in t... ARTHUR LAFFER Snow's admission of central banks diversifying from dollars could be used as dollar-selling material... TERUHISA TSUJI We've seen gold break the correlation with the dollar in recent times. We saw gold strengthening eve... DARREN HEATHCOTE People are falling out of love with the dollar. The U.S. data was on the disappointing side. That do... FIRAS ASKARI Euro weakness could be more powerful than renewed dollar strength because sovereigns could refrain f... MANFRED WOLF Strong figures will support the dollar, as they suggest a good outlook for the U.S. economy from ear... TOHRU SASAKI If this comes to bear, the current 200 basis points advantage for U.S. cash will be preserved throug... BENJAMIN PEDLEY [Snow's comment] really does undermine the credibility of the U.S. strong dollar policy. JANE FOLEY The current global market for weather products is estimated at over $16 billion, while the potential... BRADLEY HOGGATT Every day, foreigners need to acquire more than $2 billion in U.S. dollar denominated assets -- soon... AXEL MERK The history of U.S. trade policy amply demonstrates that dollar overvaluation and the huge and growi... FRED BERGSTEN It's been on a steady decline, it certainly bodes well for the U.S. dollar and obviously that feeds ... TED GOULD The U.S. dollar might grind a little higher as the United States comes back from a long weekend. But... GREG GIBBS With little in terms of fresh news or developments overnight, traders appear content to trade the U.... ALEX BEUZELIN The Canadian dollar is oversold. The economic fundamentals are still strong, which enticed investors... REID FARRILL People are cautious about buying the dollar at the moment. The U.S. needs a lot of investment to fun... ARMIN MEKELBURG The U.S. dollar is lower, putting up the mark and associated currencies and hitting European exporte... JAMES CORNISH We're telling investors to use current strength in the dollar to get out of cyclical stocks. JAMES CORNISH What we are concerned about is that going forward they may decide to remove petrodollars and redirec... MICHAEL WOOLFOLK Global investors still like dollar-denominated assets. The fundamentals still auger for dollar stren... DAVID MOZINA We expect the dollar to remain strong in early 2006. (But) once the U.S. Federal Reserve finishes ti... BESA DEDA Narrowing interest-rate differentials with the U.S. will continue to hit the Australian dollar. BENJAMIN PEDLEY The sharp rally on Wall Street is filtering through the currency market and lifting the U.S. dollar. ALEX BEUZELIN We find that capital flows trends are once again moving against the dollar, which could prove fortui... DEUTSCHE BANK The original fall was in response to the trade numbers and the strong U.S. dollar. BERNARD HUNTER I saw Bitcoin as an actual market opportunity: as a trillion-dollar marketplace with long-term poten... ADAM DRAPER Our results for fiscal 2000 reflect a year in which we generated positive revenue and earnings growt... PHILIP KNIGHT This large inflow is an important prop for the Treasury market, helping keep yields in their current... ETHAN HARRIS This large inflow is an important prop for the Treasury market, helping keep yields in their current... ETHAN HARRIS It's not just the weakness in U.S. stocks this time. The dollar is falling (against major currencies... NORIHIRO FUJITO A short squeeze could happen with the U.S. dollar if lenders suddenly forced debtors to pay in cash. ROBERT KIYOSAKI While we have said all along that the foundation for the U.S. expansion is dodgy, as long as it is w... DAVID GILMORE
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