He global dollar rose for a second straight day in early Wednesday as other major currencies languished near multi-month lows after strong U.S. data fueled a rise in bond yields and reduced some bets on U.S. rate cuts. Federal Reserve (Fed).
He dollar index —which measures the performance of the greenback in relation to a basket of six other internationally relevant currencies— rose 0.15% to 108.86 units, chasing the two-year high of 109.58 that it reached last week.
This occurred because Tuesday’s data showed that job vacancies employment in USA rose unexpectedly in November and layoffs were low, while a separate survey found that job activity service sector of the United States accelerated in December and a measure of input prices reached a two-year high, a possible warning of inflation.
The bond markets They reacted by pushing 10-year yields up more than eight basis points to an eight-month high of 4.699%.
“We are getting very strong US numbers… which is driving rates up,” he told Reuters. Bart Wakabayashi branch manager Tokyo of State Street, postponing expectations of rate cuts from the Fed until summer or beyond. “There is even discussion about whether they will cut or even raise. The narrative has changed a lot,” he added.
Markets are now pricing in just 38 basis points of easing by the Federal Reserve this year, with a first cut in July.
Meanwhile, private payrolls data from the United States to be published later in the session will be of great interest to obtain more clues about the likely path of interest rates in that country. Traders are also nervous about key employment data due Friday and the inauguration of donald trump on Jan. 20, as his second presidency is expected to begin with a series of policy announcements and executive orders.
The dollar in Uruguay reached its lowest value in a month
In Uruguay, meanwhile, the dollar fell 0.74% compared to Tuesday and closed at 43,644 pesos, according to the price of the Central Bank (BCU), So the greenback started the week lower and reached its lowest value in a month.
In this way, the us currency The year started by reversing for the moment the upward trend of 2024 and accumulated a decrease of 0.96% in the first days of 2025.
Source: Ambito
