He global dollar fell in the early hours of Wednesday after the first debate between the presidential candidates in United States, Kamala Harris and Donald Trump, and in light of the increased chances that operators see regarding a re-election of the Democratic Party through the current vice president. Uruguay, Meanwhile, the currency hit a new one-month high.
He dollar index, The index, which measures the performance of the greenback against a basket of six other major currencies, was down 0.256% to 101.38 units after the first presidential debate before the November elections.
“You would expect that if he (Trump) was doing better, we would see a dollar strong coming out of this. So I guess that’s how the market sees it. It’s a slight tilt towards Harris,” he told Reuters Rob Carnellregional head of research at ING for Asia-Pacific.
Traders are also awaiting a key report on the inflation of USA which could provide clues as to how aggressively it will cut the Federal Reserve (Fed) interest rates next week.
Meanwhile, the yen strengthened more than 1% to 140.71 per dollar, the highest level since late December, also boosted by comments from Junko Nakagawa, member of the board of directors of Bank of Japanwho reiterated in a speech the possibility that the central bank would continue to raise interest rates if the economy and inflation warranted it.
Waiting for inflation data
Meanwhile, and during the week prior to a new meeting of the Federal Open Market Committee (FOMC) In a time when the Fed is expected to cut interest rates, investors await the consumer price index report from the United States Department of Labor to be published later. The intention is to obtain more clues about the direction of monetary policy, although the central bank has already warned that the employment has gained more attention than inflation.
It is expected that the General CPI rose 0.2 percent on the month in August, according to a Reuters poll, unchanged from the previous month. The question, meanwhile, is how large a cut the Fed will go ahead with, especially after Friday’s mixed jobs report.
“What we needed to see to prompt the Federal Reserve to take further action would be much more obvious evidence of slowdown/recession, and in particular in the labour market. And I don’t think we’ve seen that in the latest payrolls report,” said ING analyst Carnell.
Markets are currently pricing in a 65% chance that the central bank will USA cut rates by 25 basis points, while a 35% probability is attributed to a 50 basis point cut when the Fed deliver its decision on September 18, the tool showed. CME FedWatch.
In Uruguay, the dollar recovered its positive path
In Uruguay, Meanwhile, the dollar reached a maximum of more than a month after rising this Tuesday by 0.12% compared to the previous day and closing at 40.437 pesos, according to the exchange rate. Central Bank (BCU), consolidating itself in the 40 pesos range, where it has been for two uninterrupted months.
The US currency has thus accumulated three consecutive days of gains and has appreciated 0.25% so far this month, seeking to close another week on the rise. Meanwhile, the annual variation of the dollar is 3.63% compared to the close of 2023.
Source: Ambito
I am an author and journalist who has worked in the entertainment industry for over a decade. I currently work as a news editor at a major news website, and my focus is on covering the latest trends in entertainment. I also write occasional pieces for other outlets, and have authored two books about the entertainment industry.
