The dollar advanced against the euro and pared losses versus the yen after a government report showed demand among international investors for U.S. assets rose in January to its highest in almost two years.
Foreigners bought a net $91.5 billion of U.S. financial assets, up from a revised $60.7 billion in December, the Treasury Department said. Tomorrow the government reports the current account deficit for the fourth quarter. The U.S. needs to attract about $1.8 billion a day to compensate for the record current account and maintain the value of the dollar. Other economic data released may show a slight gain in the United States' domestic economy.
Could this be the start of the dollar's gain?