Dollar Is `Vulnerable' to a Decline in Investment Flows to U.S., BIS Says

(Bloomberg) -- The dollar is ``vulnerable'' to a
drop in the investment inflows that the U.S. relies on to fund
its trade and current-account deficits, according the Bank for
International Settlements.

The currency has been supported by purchases of Treasuries
by foreign investors attracted to U.S. yields and central banks
that buy dollars to curb appreciation in their exchange rates.
Such investors now own a record 80 percent of Treasuries due in
three to 10 years, according to research from HSBC Holdings Plc.


Read more at Bloomberg Bonds News