US deficit widens

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The US trade deficit was $61 billion in February, an all-time high. This was up from $58.3 billion in January, which had also been a record.The increase was mostly blamed on increases in oil prices, and despite the rise, some analysts had expected much worse. It remained to be seen what effect the release of the minutes of the most recent meeting of the Federal Open Market Committee and what they have to say about interest rates will have on the dollar.After an initial fall when the data was released, the dollar sat about the same against the euro at $1.296 in early trading.Still unknown is what the effect on the dollar will be when the most recent Federal Open Market Committee minutes are released and investors find out what the minutes have to say concerning interest rates.