The large current account deficit has no impact on the dollar given its status as the reserve currency. Imports of goods increased $20.1 billion to $813.9 billion, the highest since the second quarter of 2022, boosted by gains in capital goods, mostly computer accessories, peripherals and parts as well as computers and semiconductors.

A reduction in interest rates, widely expected later this month, could bring the world's biggest economy a further boost.

The U.S. trade deficit widened to the highest level in more than two years in July as businesses likely front-loaded imports in anticipation of higher tariffs on goods, suggesting trade could remain a drag on economic growth in the third quarter.