Dollar steady as trade deficit widens

| April 12, 2005 | 0 Comments
Dollar steady as trade deficit widens

Despite the news that the U.S. trade deficit was at an all-time high in February, the dollar remained about the same on Tuesday.

In early trading in New York, the dollar was nearly the same in relation to the euro, standing at $1.296 after an initial fall when the trade data was released.

It remained to be seen what effect the release of the minutes of the most recent meeting of the Federal Open Market Committee and what they have to say about interest rates will have on the dollar.

In February, the trade deficit was up to $61 billion, from $58.3 billion in January, largely due to increases in oil prices.

Some experts felt that the news Tuesday could have been much worse. Analysts said that in order for the dollar to weaken substantially and over a long period of time, trade data must be much worse than expected.

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