Dollar drops as trade deficit widens in March, median home prices fall; stocks end mixed

Dollar drops as trade deficit widens in March

NEW YORK — The dollar dropped against the euro and the pound Tuesday after a report showed that the U.S. trade deficit rose in March, while home prices fell in nearly nine out of every 10 U.S. cities in the first quarter of this year.

The 16-nation euro advanced to $1.3643 in late New York trading Tuesday from $1.3595 late Monday, while the British pound rose to $1.5272 from $1.5131. The dollar fell to 96.43 Japanese yen from 97.45 yen.

The Commerce Department said Tuesday the deficit widened for first time since July to $27.6 billion in March. Economists expect the deficit will remain at low levels this year as a recession in the U.S. crimps demand for foreign goods.

Meanwhile, the National Association of Realtors said that median sales prices of existing homes declined in 134 out of 152 metropolitan areas compared with the same period a year earlier. Prices rose in the other 18 cities.

Stocks ended mixed as early concerns about a barrage of stock offerings eased and as rising oil prices lifted energy stocks. Wall Street suffered one of its worst days in recent weeks on Monday, when the Dow Jones industrial average closed down more than 150 points to 8,418.77 amid widespread profit-taking.

The dollar often trades inversely with stocks, as risk-hungry investors desert the buck’s “safety” lure and buy up equities or commodities.

Also Tuesday, the Chinese central government said the country’s exports plunged 22.6 percent in April from a year earlier — the sixth straight monthly decline.

In other late trading, the dollar slipped to 1.1057 Swiss francs from 1.1096, but inched up to 1.1619 Canadian dollars from 1.1613.