The International Monetary Fund sees further potential for a depreciation of the US dollar due to the high US current account deficit, according to a draft IMF report obtained by Reuters news agency.
"The IMF sees further potential for a depreciation of the dollar given the high current account deficit", the draft report said.
It sees the US budget deficit reaching 6.1 per cent of gross domestic product in 2003, with a structural deficit of 5.2 per cent of GDP, and only expects a slight decline in 2004, according to the draft World Economic Outlook due to be submitted at the annual meetings of the IMF and World Bank in Dubai in September.
The IMF sees US GDP growth accelerating to 3.6 per cent in 2004 due to "unprecedented" monetary and fiscal policy stimulus, adding that growth may be even stronger than predicted.