Investing.com investing.com 31 Dec, 2020 03:15 am

Dollar sucked into downward spiral by U.S. twin deficits By Reuters

Dollar sucked into downward spiral by U.S. twin deficits By Reuters
Dollar sucked into downward spiral by U.S. twin deficits

twin deficits argue for an ever cheaper currency.Bears have also resurrected the "twin deficits" excuse for shorting the dollar - that the explosion in the budget and trade deficits means more dollars being printed and moved abroad."The deterioration in the 'twin deficits' will do nothing to improve USD sentiment, even if it does not as yet justify extreme USD undershooting either.The country is also haemorrhaging dollars on its trade account where the deficit on goods hit a record $84.

Likewise, the current account deficit widened to a 12-year high in the third quarter and there was a large shortfall in net financial transactions as Americans borrowed more from abroad.2305, having hit its highest since April 2018 with a gain of almost 10% for the year.

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