Stronger Dollar Drains Foreign Official U.S. Treasury Demand in March, Goldman Sachs Says

GateNews
According to Goldman Sachs, a stronger dollar in March prompted foreign official institutions to sell U.S. Treasuries. The dollar index rose 2.4% that month, marking its largest single-month gain since July, while foreign-held U.S. Treasury holdings fell from record highs. Strategist Isabella Rosenberg stated that the dollar is "one of the most meaningful drivers of foreign official U.S. Treasury demand after valuation adjustments." Goldman views this as a temporary pattern linked to foreign governments supporting their domestic currencies and stemming capital outflows during the period, rather than a structural shift in Treasury demand.
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