He global dollar stabilised in the early hours of Friday after having closed a negative day, still affected by the first interest rate cut by the United States Federal Reserve (Fed); in relation to other currencies, it fell to the pound sterling but he went up in front of the yen.
He dollar index —which measures the performance of the greenback in relation to a basket of six other currencies of international relevance— remained around the closing values of the previous day, around 100.7 units, while investors began to assimilate the reassuring message from the president of the Fed, Jerome Powell.
The central bank head said the huge reduction was a measure to safeguard a resilient economy, instead of one emergency response to the recent weakness of the labor market.
“It is indeed a decision of the Fed. “What Chairman Powell said was that they are watching the labor market carefully, and if it slows too much, they are prepared to act,” he told Reuters. Marija Veitmane, Head of Equity Research State Street Global Markets.
“Powell also said he doesn’t see the labor market as inflationary; that’s a positive message for the risk assets“, he added.
Days of expectations for central banks
For its part, the dollar rose 0.8% compared to yen up to 143.75 after the governor’s comments Bank of Japan (BoJ), Kazuo Uedahaving earlier fallen around 0.6% to 141.74 after the central bank held interest rates steady in a widely expected move.
The yen lost ground as Ueda gave few clues on when rates might be raised again, saying uncertainty surrounding the U.S. economy and volatility market could affect their policy measures.
Meanwhile, the pound sterling climbed in front of the dollar and the euro on Friday as strong retail sales data from the United Kingdom provided an additional boost to the currency’s uptrend, which briefly hit $1.33405, a March 2022 high for the third consecutive day, but pared earlier gains to $1.32975. On the week, it gained 1.23%.
Looking ahead, data from Great Britain “They are not as soft” and expectations of rate cuts have moved further away in the future, he noted. Niels Christensen, Chief Analyst of Nordea Bank. “That’s also one reason why we see a stronger pound, not just against the yen, but also against the dollar and also against the euro,” he said.
He euro fell 0.10% to 83.97 pence, recovering slightly from an earlier drop to its lowest level in two years.
Sterling had risen on Wednesday as data showed British inflation held steady in August but rose in the services sector, which is closely watched by the Bank of Englandto 5.6% from 5.2% in July.
It received a further boost after interest rates were kept at 5.0% on Thursday, and its rate-setter, Catherine Mann, said earlier on Friday that it took a cautious view on the prospect of multiple rate cuts in coming months and stressed the need for policy to remain restrictive.
The money markets They discounted a 71% probability that the Bank of England will cut rates by 25 basis points at its next meeting in November.
Record dollar in Uruguay
In Uruguay, meanwhile, the dollar rose 0.71% compared to Wednesday and closed at 40.599 pesos, according to the interbank quote. Central Bank of Uruguay, (BCU) reaching a new maximum value so far this year and adding its fourth consecutive day of rise.
The increase on Thursday is due to a bullish rally of the greenback, which has accumulated an increase of 3.13% so far this month and is heading towards its fifth consecutive month with gains in the local market, while the appreciation of the dollar In the annual accumulation it reaches 6.60%.
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.
