US equity markets to lead dollar path

Recently published Treasury International Capital data for May underpinned growing concerns about the funding of the US current account deficit. Although foreign private investors continued to show a healthy appetite for US fixed-income products, the evidence suggests that these purchases were largely made on a 'hedged' basis and therefore had no impact on dollar demand.

The two key factors continued to be the appetite of foreign central banks, for US government and agency paper and the appetite