US Current Account Deficit Narrows in Fourth Quarter

The current account deficit narrowed in the fourth quarter, aided by an increase in services exports and more income earned abroad, a government report showed on Thursday.

The Commerce Department said the current account deficit, which measures the flow of goods, services and investments into and out of the country, fell to $110.4 billion, from an upwardly revised $112.4 billion in the third quarter.

That represented 2.8 percent of gross domestic product, unchanged from the third quarter, and tied for the lowest since 2.5 percent in the second quarter of 2009.

The smaller deficit should be supportive of 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.