The dollar rises benefiting from its safe-haven status against the risk of a US default, and because traders are cutting bets on a short-term Federal Reserve rate cut after after a disappointing forecast from Home Depot and US retail sales data, which for April pointed to lower consumer spending.
The American president, Joe Bidenand the speaker of the House of Representatives, the Republican kevin mccarthyhave come close to an agreement to raise the country’s debt ceiling, but have not yet closed it.
In this context, the dollar index, which measures the greenback against a basket of six currencies, gains close to 0.4%, also driven by the low probability of a cut in interest rates in the world’s leading economy.
Dollar in the region: in which countries the US currency rises most strongly
He Mexican peso trade with a loss of 0.8%, at 17.62, compared to the reference price of Reuters yesterday, standing out as one of the global currencies that lost the most ground against the dollar. “The Mexican currency was affected by a reduction in risk appetite, given the growing nervousness of the markets due to the little progress in the negotiations to raise the debt ceiling of the United States”said Monex Grupo Financiero, in an analysis note.
He Argentine pesoin the official market, down 0.3%, at $231.80, in depreciation regulated by the Central Bank, while the Merval stock index rose 1.1% due to hedging against rising inflation that could exceed 130% this year and after the Government announced measures economic. “The announced measures had little taste,” said an operator, noting that “investors seek to hedge against uncertainty, either with dollars or in well-liquid stocks such as energy.”
For his part, he Brazilian real depreciates 0.2%, at 4.95. Brazil faces challenges in consolidating disinflation despite the progress made so far, the head of the central bank said on Wednesday. Roberto Campos Netoonce again highlighting his concern about rising inflation expectations, although he noted that inflation had dropped from 12.1% in April 2022 to 4.2% in the same month this year.
Meanwhile, the Chilean peso it fell 0.1%, to 798.55, and the leading index of the Santiago Stock Exchange, the IPSA, fell 0.2%; he Colombian peso it lost 0.5%, at 4.55, in its second day in negative territory; while the MSCI COLCAP stock index added 0.7%. Finally, the Peruvian currency, Sunappreciated 0.2%, to 3.69 per dollar unit.
Source: Ambito
