The dollar declined on Friday after a report showed the U.S. trade deficit widened unexpectedly in May, adding to concerns about the health of the world’s largest economy.

The Commerce Department said the trade gap increased to $59.8 billion, up from $58.5 billion in April, confounding expectations for a narrowing. The data weighed on the dollar, which had already been under pressure from rising oil prices.

“The widening trade deficit is definitely not good news for the dollar,” said John Smith, a currency strategist at Global Forex Trading. “It suggests that the U.S. economy is still struggling and that the dollar is likely to remain weak in the near term.”

The euro rose to a session high of $1.5780 against the dollar, while the dollar fell to a low of 107.50 yen. The dollar index, which measures the dollar against a basket of six major currencies, fell to its lowest level in nearly two weeks.

The trade deficit has been a persistent drag on the U.S. economy, and the latest figures suggest that it is unlikely to improve significantly in the coming months. High oil prices and weak global demand are expected to continue to weigh on U.S. exports, while strong domestic demand is likely to keep imports elevated.

Investors are now looking ahead to next week’s data on retail sales and consumer confidence for further clues about the health of the U.S. economy. Any further signs of weakness could put additional pressure on the dollar.