Euro, sterling money fund assets rise in week: iMoneynet

[NEW YORK] Assets of euro and sterling-denominated money market funds rose for a second week following Britain's vote to exit the European Union, while overseas dollar-denominated money fund assets fell, the Offshore Money Fund Report said on Tuesday.

Total euro-pegged money fund assets rose by 2.37 billion euros to 84.87 billion euros in the week ended Friday, while assets in sterling-denominated funds increased 4.49 billion pounds to 169.39 billion pounds, according to the report published by iMoneynet.

The rise in euro and sterling money fund assets came as investors worry about the repercussions of Brexit on the British and other European economies.

The pound hit a 31-year low against the dollar last week , while the euro also weakened versus the greenback.

On Tuesday, Bank of England Governor Mark Carney said the BOE could to act to cushion the economy from a Brexit fallout.

Overseas dollar-denominated money funds saw US$4.62 billion in outflows, lowering their total assets to US$403.49 billion. This partly reversed the US$20.9 billion in inflows the previous week.

Euro fund yields averaged -0.40 per cent, down from the prior week's -0.39 per cent, while the average yield on sterling funds held steady at 0.40 per cent.

The average yield on offshore dollar funds was unchanged on the week at 0.33 per cent.

REUTERS

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