Reply #82: Update

[Jcrowley]

Dollar Falls on Concern About Widening U.S. Current-Account Gap

By Agnes Lovasz and Stanley White

Dec. 18 (Bloomberg) -- The dollar fell against the yen on speculation a report today will show the U.S. current-account deficit widened to a record on a flood of imports from China.

The U.S. currency slid on concern the deficit means the country is increasing dollar sales to pay for imports and needs to lure more inflows from abroad to fund the gap. Former Fed Chairman Alan Greenspan on Dec. 11 said the U.S. currency may keep falling until the deficit shrinks. The dollar had its biggest drop in a week versus the euro after his remarks.

``One of the factors weakening the dollar is the current account deficit report today, as we see a resumption of the widening,'' said Monica Fan, head of foreign exchange strategy in London at RBC Capital Markets.

The dollar dropped to 117.85 yen at 7:19 a.m. in New York, from 118.17 in New York late Dec. 15. It also traded at $1.3095 against the euro from $1.3080.

http://www.bloomberg.com/apps/news?pid=20601101&sid=aoiTx4zeQfMg&refer=japan