Dollar drops 1.5 cent against euro

WORSE than expected trade data from America caused the dollar to sink by 1.5 cent against the euro yesterday.

The United States’ trade deficit, which measures the amount by which imports exceed exports, went up 19% in June after exports showed the biggest drop in three years. The deficit was aggravated by imports reaching an all-time high in the same month and stood at $55.8 billion in June, 19% higher than the previous month.

Imports rose 3.3% during the month to a record $148.6bn, which was the largest single increase since November 2002. But exports fell 4.3% to $92.8bn, a number that disappointed the markets after rising 2.7% the previous month. American exports have been lower than imports every month since the early 1990s.