Dollar falls as US trade gap swells unexpectedly

Dollar falls as US trade gap swells unexpectedly

The US Dollar fell against other major currencies after the US trade gap reached a record level of $48.3 billion in April, breaking the March record of $46.6 billion and surpassing economists' forecasts of $45 billion. Commerce Department said that imports rose by 0.2% to a record level of $142.3 billion as the US' demand for foreign-made goods increased, especially automobiles, TVs, furniture and clothes. Exports declined by 1.5% to $93.9 billion as foreign demand for US capital goods slumped and civilian aircraft exports decreased by 20.4%. Higher imported crude oil prices also contributed to the trade deficit in April. The average price of imported crude oil rose to $31 per barrel, the highest since February 1983. In April, the US trade gap with China expanded by 14.8% to $12 billion. Trade deficit with Japan and European Union decreased by 5.2% and 1.2% to $6.4 billion and $9.2 billion respectively. The US trade gap with Canada reached to the highest level of $5.7 billion since 2001. The trade deficit with Mexico amounted to $3.2 billion, indicating a decrease of 17%. The trade gap with Hong Kong, South Korea, Singapore and Taiwan widened $1.1 billion and reached $1.8 billion.