Net inflows into US markets dropped below the level needed to cover the trade deficit for the first time in seven months in December, prompting concern about the dangers of the current account deficit.

The Treasury reported net inflows of $56.6bn in December, down sharply from $91.6bn in November and failing to match the $65.7bn December trade deficit. As a crude measure, net inflows that fail to balance trade outflows imply less demand for dollars and therefore suggest the potential for a slide in the US currency.