French Agricultural Credit Bank: The latest data indicates that the market's demand for long-term US dollar assets remains strong.
Valentin Marinov, the head of foreign exchange strategy at the French Agricultural Credit Bank, stated that the U.S. Treasury data to be released this week may show that recent speculation in the market about funds rapidly seeking diversification outside of the U.S. dollar may have been exaggerated. "If the data continues to show a significant demand for long-term U.S. dollar assets, I would not be surprised," Marinov said in an interview; data on the inflow of long-term funds into the United States will be released on Wednesday. He is skeptical that central banks around the world will significantly reduce their allocation of U.S. dollars in the short term; he stated, "The U.S. exception thesis is certainly different from the past, but it remains intact and continues to support the U.S. dollar".
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