The global dollar remains at its highest since August, awaiting inflation data in the US

The global dollar remains at its highest since August, awaiting inflation data in the US

October 10, 2024 – 10:01

Operators lower their expectations of a new 50-point cut by the Fed, where the gradualist approach to monetary easing prevails.

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He global dollar hit a 10-week high against the yen and hit a nearly two-month high as traders see the Federal Reserve of United States (Fed) move quickly into greater monetary flexibility. In Uruguay, The currency also behaved bullishly and once again approached the 42 peso range.

He dollar index — which measures the greenback’s performance against a basket of six other internationally relevant currencies — held near a nearly two-month high touched overnight, as traders further reduced bets on rate cuts in the United States this year after last week’s unexpectedly strong payrolls data.

Thus, in the early hours of Thursday it registered few changes, standing at 102.88 units, close to its highest level since mid-August. And in front of yen, touched 149.54 yen for the first time since August 2, although it later fell 0.3% to 148.82 yen.

US inflation, key

Today will be published consumer price index (CPI) September, and it is expected that the core inflation of the United States remains stable at a year-on-year rate of 3.2%, said economists surveyed by Reuters.

The minutes of the last meeting of the Fed, released overnight, confirmed the central bank’s focus on keeping the labor market healthy. “The argument in favor of a more gradualist approach is now definitely the central position,” he explained in that sense Alvin Tan, head of currency strategy for Asia in RBC Capital Markets. “Market momentum is to reconsider how much it will actually cut the Federal Reserve in the coming months. “I think that momentum can grow, because the flow of data from the United States has been relatively good recently,” he added.

In parallel, the operators put an 85% probability that the Fed cut rates by 25 basis points in its next policy decision on Nov. 7, with a 15% chance of no change, the tool showed FedWatch of the CME Group. A week earlier, markets considered a cut certain, with a 35% chance of another half-point reduction.

Two consecutive days of rise in Uruguay

In Uruguay, meanwhile, the dollar rose 0.61% compared to Tuesday, closing at 41.796 pesos in the interbank price of the Central Bank of Uruguay (BCU), thus chaining two consecutive days on the rise and being close to returning to the range of 42 pesos.

The greenback accumulates a monthly variation of 0.37% and an annual variation of 7.11%, since its price is 2.77 pesos above that registered after the closing of the last exchange day of last year.

Source: Ambito

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