Credit Suisse fund managers are watching the decline of the dollar with a careful eye, Reuters reports.
If the dollar continues on its downward spiral, it is speculated by Credit Suisse officials and others that investors could be spooked away from purchasing U.S. assets. With the withdrawal of funds from U.S. assets, a so-called snowball effect could be triggered.
Bernhard Possa, head of international fixed income at Credit Suisse, told Reuters that the dollars recent decline is directly related to the financing of the record current account deficit. He stated, "Without daily purchasing of U.S. securities equities and treasuries the dollar falls."
Credit Suisse Asset Management has global assets under management of $292 billion.