This is a chart of the inverted trade-weighted US dollar index versus foreign financial commercial paper outstanding.

While the USD is plummeting then, FFCP is surging — suggesting foreign banks may be tapping the market to borrow cheap dollars.

Thanks to Sean Corrigan of Diapason Commodities Management for the chart.

Related links:
Commercial paper isn’t as healthy as it seems – WSJ
The rumours of the dollar’s death are much exaggerated – FT
Debt and the dollar’s demise, a compendium of concerns – FT Alphaville
The dollar shortage problem, evaluated – FT Alphaville

This entry was posted by Tracy Alloway on Thursday, October 22nd, 2009 at 16:55 and is filed under Capital markets. Tagged with Banks, Commercial paper, currencies, Dollar. Edit this entry.