NEW YORK -- Net overall capital inflows into the United States dropped to $58.8 billion in June from May's revised inflow of $107.3 billion, hurt by a plunge in net purchases of U.S. securities by private investors.

June's net overall capital inflow barely covered the U.S. trade deficit for the month, which was $58.1 billion.

Net long-term capital inflows totaled $120.9 billion in June from a revised $126.0 billion in May.

"We're still seeing healthy net long term inflows which is positive," said Brian Dolan, FX research director at Forex.com in Bedminster, New Jersey. "The report is not a real dollar negative as we're able to still cover the trade deficit."

The dollar showed little reaction in foreign exchange markets after the U.S. Treasury flows report.

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The report showed that nearly all of the net capital inflows in June were from official sources, which include foreign governments and central banks.

Net private sector inflows added just $700 million in June, slumping from $109 billion in May.

Data also showed that U.S. June net purchases of securities from official sources totaled $53.8 billion, were the biggest since March 2004.

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