Dollar Resumes Slide in U.S. Trading
The dollar resumed its recent decline against most other major currencies in U.S. trading Tuesday after posting a mixed showing in Europe.
Gold prices were narrowly mixed in the United States after declining overseas.
Currency dealers said the dollar, which had rebounded slightly in the previous session, again came under pressure from fears in the foreign exchange markets that the United States economy remains sluggish at the same time that it is saddled with huge budget and trade deficits.
The Commerce Department said that in June, the United States suffered its second biggest trade deficit on record--$13.4 billion--as a big jump in demand for foreign cars and oil overwhelmed U.S. exports.
Commerce Secretary Malcolm Baldrige, taking note of the shortfall, said that despite the dollar’s recent declines, the currency was still too strong for American industry to be able to effectively compete in world markets.