US Current Account Deficit Narrows to 2 year Low

The U.S. current account deficit shrank to its narrowest in nearly two years in the third quarter as weak domestic demand and lower oil prices curbed imports, a government report showed on Tuesday.

The Commerce Department said the current account gap, which measures the flow of goods, services and investments into and out of the country, fell to $107.5 billion, the lowest level since the fourth quarter of 2010, from $118.1 billion in the second quarter.

That represented 2.7 percent of gross domestic product, the smallest share since the second quarter of 2009, and down from 3.0 percent in the second quarter.

The smaller deficit, if sustained, should help support the dollar, even as the Federal Reserve continues its aggressive easing policy to boost economic growth.

via Reuters

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.