LONDON (AFX) - The dollar slumped on news that the US recorded its worst ever monthly deficit in November.
Figures from the Commerce Department revealed that a 2.3 pct slide in US exports in November drove the US trade deficit during the month to an all-time high of 60.3 bln usd compared with 56 bln in October and expectations of a modest decline to 53.3 bln.
News of the record shortfall pushed the euro up to a high 1.3234 usd from 1.3127 usd before the data, and the dollar down to 102.44 yen from 103.16.
The dollar has been in the doldrums in recent months largely over concerns over the US' trade position, and today's numbers are expected to bring the issue of the US's deficit back to the forefront of the market's attention.
"These are pretty appalling trade numbers and will continue to put a question mark over the future of the dollar," said Neil Mackinnon, chief economist at ECU Group.
"This will dent confidence of the dollar bulls and certainly going forward the trade gap is a major issue for the US currency," he added.
pp/ak
For more information and to contact AFX: www.afxnews.com and www.afxpress.com
Figures from the Commerce Department revealed that a 2.3 pct slide in US exports in November drove the US trade deficit during the month to an all-time high of 60.3 bln usd compared with 56 bln in October and expectations of a modest decline to 53.3 bln.
News of the record shortfall pushed the euro up to a high 1.3234 usd from 1.3127 usd before the data, and the dollar down to 102.44 yen from 103.16.
The dollar has been in the doldrums in recent months largely over concerns over the US' trade position, and today's numbers are expected to bring the issue of the US's deficit back to the forefront of the market's attention.
"These are pretty appalling trade numbers and will continue to put a question mark over the future of the dollar," said Neil Mackinnon, chief economist at ECU Group.
"This will dent confidence of the dollar bulls and certainly going forward the trade gap is a major issue for the US currency," he added.
pp/ak
For more information and to contact AFX: www.afxnews.com and www.afxpress.com
© 2005 AFX News
