Recent Asset Portfolio Shifts

WASHINGTON (Reuters) – The recent shifts in asset portfolio allocations away from the dollar may represent a move from overweighting dollar assets to a more natural weighting between dollars and other currencies, including the euro, according to European Central Bank executive board member Philip Lane.

Lane spoke during a panel discussion at an Institute of International Finance conference, noting that U.S. assets were “priced to perfection” following President Donald Trump’s election last year. He pointed out that recent outflows from U.S. Treasuries might be seen as reallocations that “can either settle down or invite a deeper rethink.”

Nevertheless, Lane emphasized that the dollar will continue to far outweigh euros in most portfolios.