Drop in dollar beneficial to US trade deficit

As the dollar plummets to lowest levels in 15 years, economists consider the impact on transatlantic trade and the effect on UK businesses

The plummeting dollar has now crossed the $2 to £1 mark, its lowest level since 1992. Much has been made of the two-dollar pound and its effect on the slowing US economy, but there are in fact several positives to come out of the current situation. One is that the cheaper dollar is making a dent in the US's large trade deficit, economists say. The US Census Bureau's foreign trade statistics report the nation's goods and services deficit fell from $58.9bn to $58.4bn between January and February this year as imports decreased. Joost van Leenders, senior economist at ABN Amro, said: "Price ...