Foreign Investment in U.S. Lifts

Net foreign investment in the USA jumped 51% in January to $91.5 billion, the highest level in a year and a half and the second-highest on record, the Treasury Department said. The increase in net foreign investment — purchases of U.S. stocks, bonds and other investments by foreigners minus sales — included gains in purchases by both private investors and foreign central banks.

The news led to a rise in the dollar as the data helped ease percolating concerns investors were souring on U.S. assets in light of the three-year fall in the dollar. The euro weakened 0.4% to $1.3314 dollars per euro, the lowest in a week.

International M&A activity is also up. Could we see more international companies building plants and offices in the U.S.? It is likely, according to the experts.

More here.