Investment flowed out of the euro zone in November as residents bought overseas money market instruments, and analysts said the new figures today may show the sharp euro rise that month was driven by speculators.
European Central Bank figures showed a net €10.5 billion worth of portfolio investment flowed out of the region in November, with a large net outflow in debt investments offset by a small net inflow in shares.
The main driver of the portfolio investment outflow was the purchase of a net 12.2 billion euros in foreign money market instruments by euro area residents in November, while foreigners sold €5.0 billion of such securities, the data showed.
Analysts said the flow away from the euro zone shown in the data went against the conventional wisdom at the time for investors to take advantage of the rise in the euro by buying euro zone debt.