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Despite the recent market rebound, foreign investors remain reluctant to buy US assets, according to Deutsche Bank. Currency strategist George Saravelos notes a sharp halt in foreign fund inflows into US securities over the past two months.
Data from approximately 400 investment funds in the United States and larger foreign-registered funds show aggressive selling of US bonds and a pause in stock purchases by investors abroad. As Saravelos warns, this trend could threaten the greenback.
Demand for American assets from foreign investors surged in recent years, with significant inflows from Europe and Japan. However, current trends suggest fading confidence, Bloomberg experts note.