Dollar rises as U.S. trade gap plunges 2009-04-10 08:24:34   Print

Special Report: Global Financial Crisis

    NEW YORK, April 9 (Xinhua) -- The dollar rose against most major currencies on Thursday as a latest report showed U.S. trade deficit plunged in February.

    The U.S. Commerce Department reported on Thursday that U.S. trade deficit narrowed to 26 billion dollars in February, sharply lower than 36.2 billion dollars in January. Trade deficit in February is the lowest since November 1999.

    The volume of goods exports rose 3.1 percent after five months of steep decline while imports fell 5.3 percent as lower U.S. spending and a major inventory adjustment hit demand for foreign products.

    A narrowing U.S. trade deficit may support the dollar as the U.S. spends fewer greenbacks in international markets to buy foreign products, analysts said.

    The U.S. currency was also boosted by a better than expected profit forecast from Wells Fargo, the fourth largest U.S. bank. Wells Fargo said on Thursday that it expects to post a record 3 billion dollars first-quarter profit, with profit per share much higher than expected.

    The euro bought 1.3165 dollars in late New York trading compared with 1.3234 dollars it bought late Wednesday. The pound fell to 1.4677 dollars from 1.4681 dollars.

    The dollar fell to 1.2251 Canadian dollars from 1.2380 Canadian dollars, and rose to 1.1559 Swiss francs from 1.1493 Swiss francs. It rose to 100.52 Japanese yen from 99.70 Japanese yen.

Editor: Bi Mingxin
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