Professional Documents
Culture Documents
Real It Is?
Presented By:
Rupesh Gaikwad 164
Shreyak Shah
184
Suvrat Dayal
202
Vinayak Sanil
221
Flow of Presentation
Introduction
History
Current Scenario
Conclusion
War (1967-71).
Doubts in International Markets.
buy oil.
Iraq started selling oil in Euro (2000).
US invading Iraq (2003).
Revert sale of oil in Dollars.
Subprime Crisis
contd
U.S.
contd
As governments took steps to stabilize
global financial system, investors become
more tolerant of risk again.
FI now in search of high yields elsewhere
often in their own countries.
Depreciation of dollar this year: unwinding
of one-off factors that led to its
appreciation.
Spike in risk aversion led to FI seeking to
invest in U.S. T-bill.
contd
Weakening
contd
As
Conclusion
At end of June08, foreign holding of U.S.
Treasury notes & bonds totaled $2.2 trn.
Foreign central banks hold nearly ($1.7trn)
half of marketable supply of long-term
Treasury securities outstanding.
What can reverse dollars recent slide ?
A return of risk aversion
Higher rates of return on dollar assets
will attract capital inflows
dollar