According to Brown Brothers Harriman’s Elias Haddad, foreign investors sharply increased their purchases of long-term US securities in April, with net foreign purchases totaling $206 billion for the month, the highest since November 2025. This figure marks a significant rise from the $96 billion recorded in March. Over the twelve months leading up to April, foreign investors accumulated a record $1,825 billion in long-term US securities, which more than offset the US trade deficit of -$719 billion during the same period [1].
Haddad emphasizes that US-G6 two-year bond yield differentials and US economic outperformance continue to support the US Dollar. He notes that these factors are consistent with the Dollar Index (DXY) trading closer to 102.00, suggesting further upside potential from current levels. The underlying demand for USD remains strong, bolstered by these robust inflows and favorable rate differentials [1].
No specific market reaction or analyst opinions beyond Haddad’s comments are provided in the article. However, the data points to continued support for the US Dollar Index, driven by both international capital flows and yield spreads [1].
CONCLUSION
Foreign demand for long-term US securities has reached record levels, providing strong support for the US Dollar Index. Yield differentials and US economic outperformance are expected to keep the dollar well-supported, with potential for the DXY to edge higher from current levels.