Overseas dollar-denominated money market funds posted their biggest drop in assets for 2016 last week, led by a steep fall in prime fund assets, the Offshore Money Fund Report said on Tuesday. Total offshore dollar fund assets tumbled $16.19 billion in the week ended on Friday to $384.40 billion, their lowest since the week of June 17, according to the report published by iMoneynet.
Assets of dollar prime funds, which can invest in bank debt, fell by $16.00 billion to $276.41 billion, while those of dollar funds, which invest solely in Treasury bills and other government-related securities, slipped by $189.9 million to $107.99 billion. Dollar money funds overseas may be losing their allure as the greenback has weakened on reduced expectations that the Federal Reserve may raise interest rates by the year-end.