Reply #84: Bit more on repatriated profits in this one [View All]

[54anickel]

http://today.reuters.co.uk/investing/financeArticle.aspx?type=usDollarRpt&storyID=URI:urn:newsml:reuters.com:20051024:MTFH47414_2005-10-24_14-55-10_N2433641:1

snip>

The dollar has been boosted for much of 2005 as rising U.S. interest rates and yields have burnished the appeal of dollar-denominated deposits.

"Higher rates are attracting capital, while corporates repatriating profits from overseas will also keep demand high for the dollar," Mazanec said.

Analysts say the dollar is in a tug-of-war -- inflows are coming from corporations looking to benefit from a one-time tax break on repatriated income related to the Homeland Investment Act, while central banks looking to diversify their reserves are selling dollars.

more...

There's also a headline from the WSJ that reads, "Rising Stock Buybacks Align With Repatriated Profits" but I don't have a subscription to get to the article.