Reuters reported that US exports hit a record high in March 2011, buoyed by the weak dollar and strengthening global demand as US trade returned to levels last seen before the global financial crisis.

The Commerce Department said in a report that US exports grew 4.6% in March 2011 to USD 172.7 billion, surpassing the record set in July 2008 before world trade took a sharp downturn. The March export rise was the biggest month to month gain in 17 years.

A weaker dollar helps US exports by making them cheaper in world markets. The dollar has fallen 5.2% against a basket of currencies since the start of 2011. Against the euro, the dollar has been down nearly 7% so far this year.

Imports grew 4.9% to USD 220.8 billion as the average price for imported oil hit USD 93.76 per barrel, the highest since September 2008. Oil prices continued to rise in April, but have receded in recent weeks back to early March 2011 levels.

Mr Paul Dales, senior US economist with Capital Economics in Toronto, said that "It's taken two and a half years, but the level of exports has finally returned to pre recession levels."

Despite the big gain, the US trade deficit grew to USD 48.2 billion in the month, the widest since June 2010, as rising oil prices helped push imports nearly 5% higher.

Economists said that the wider than expected trade gap in March was unlikely to change significantly estimates of already weak first quarter US economic growth.

Mr Dales said that "More generally, the latest surveys suggest that export growth will continue to accelerate, with the lower dollar providing further support. But the surveys suggest that imports will continue to grow at a faster rate."

(Sourced from www.reuters.com)