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Dollar steadies after CPI as foreign demand for US securities rises

Brown Brothers Harriman points to a higher-for-longer Fed stance and strong foreign purchases of long term US securities, including a $263.0 billion May increase.

Reported · Written up by our desk · Major Pairs

The US dollar has steadied after its post CPI slide, Brown Brothers Harriman strategist Elias Haddad said, citing US economic outperformance, a higher for longer Federal Reserve stance, and ongoing foreign demand for US securities.

FXStreet highlights upcoming Fed Beige Book coverage and several Fed speeches as key inputs for dollar and rate expectations, after the dollar moved in response to softer June inflation data.

According to Brown Brothers Harriman, US Treasury International Capital data showed net foreign purchases of long term US securities rose by $263.0 billion in May, up from $207.0 billion in April, the largest since November 2025.

Haddad also referenced Fed Chair Kevin Warsh’s continued commitment to the Fed’s 2% inflation target, arguing it supports a policy backdrop that is consistent with the dollar stabilizing after CPI.

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