US: Budget deficit widens to record high of $738 billion in April

• US budget deficit widens at unprecedented pace in April.
• US Dollar Index continues to post modest daily losses below 100.

The US Treasury Department announced on Tuesday that the budget deficit widened to a record high of $738 billion in April. This reading followed a deficit of $119 billion in March and came in slightly better than the market expectation for a deficit of $747.5 billion.

In April 2019, the US posted a surplus of $160 billion. The fiscal 2020 year-to-date deficit currently stands at $1.481 trillion.

Market reaction

The US Dollar ındex largely ignored these data and was last seen down 0.28% on the day at 99.95.