14 May 2003, 09:02  US current account deficit widens

The US current account deficit widened far more than expected in March, rising to the second highest level on record. The current account gap rose to USD43.5bn in March from USD40.3 in February, far wider than the increase to USD41bn that had been expected. The deficit hit a record USD44.8bn in December 2002.
The deficit widened despite a fall in the dollar that is expected to make US exports cheaper abroad, which should lead to a drop in the deficit. But analysts said that it will take time for the weaker dollar to boost export demand enough to have an impact on the current account gap. The euro rose following the news, hitting USD1.553 from USD1.520 earlier this afternoon, with the dollar already under pressure following a suicide bomb attack in Saudi Arabia that left 10 Americans dead. ///www.fxcentre.com

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