81. A ballooning trade deficit has increased calls to weaken the real to make Brazilian exports more competitive abroad. 82. A Commerce Department report showing the U.S. trade deficit shrank in February did little to help the dollar, since traders were looking for an even smaller gap. 83. A decline in the trade deficit also helped the numbers. 84. A large merchandise trade deficit carries risks for the U.S., as shown by the decline of the dollar this year. 85. A declining trade deficit helps the dollar because it means foreign exporters, on balance, have fewer dollars to sell for other currencies when they bring home profits. 86. A declining U.S. trade deficit with Japan means fewer dollars in the hands of Japanese exporters to sell for yen to bring profits home. 87. A growing trade deficit hurts the dollar because the currency must be sold to pay for the excess of imports. 88. A higher lending rate would lead shrink the trade deficit because higher domestic interest rates attract foreign investment. 89. A main factor behind the weakness in the dollar is the U.S.-Japan trade deficit. 90. A more distant concern, Greenspan said, is the mounting trade deficit. |