Backlash From Strong Dollar May Limit Capital Flows To The US
NEWS
LONDON--Capital flows into the US are likely to slow down as the price of US assets in euro terms continues to rise, according to a report from the Bank of England.
The report, Practical Issues Arising From The Euro, says that dollar appreciation against the euro will eventually offset any higher earnings growth in US assets. At this point conventional fundamentals will reassert themselves, says the report -- which should be good news for the euro's value, analysts say. The report did not say
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