He dollar in Uruguay It continues to approach the range of 40 pesos after a week of ups and downs that kept the price relatively stable, and advances in tune with the global context and the optimism of investors.
After having started the week on the downside—following the trend of a few days in which the decline was majority—the dollar It chained its third consecutive increase and was just cents away from 40 pesos once again. According to the data of the Central Bank of Uruguay (BCU)the price closed at 39,959 pesos after rising 0.19% compared to the previous day, so the US currency could reach in the coming days the value that the local market expects for December – or, at least, that it will remain until the end of the year.
With this positive streak that had not yet been seen in the second half of the month, October already accumulates a positive variation of 3.64%and is close to reversing the fall it has seen this year, currently 0.28%.
The US economy improves, can the dollar rise?
The improvement of dollar in the local exchange market seems to have a lot to do with the global trend: investors around the world look favorably on the US currency, especially after the 10-year notes of the Treasure will touch a maximum of 5.021%.
To this, now, we add that yesterday the information of economic growth in USA of the third quarter, which accelerated more than expected and reached 4.9% – driven by the increase in consumption. This news is even more positive if one considers that the general expectation was a slowdown to 4.2%.
The signs are positive in that they determine that the US economy is on a path of recovery after critical moments, so investors once again see the dollar as a safe and profitable option – even more so if we take into account the war situation in Middle East, between Israel and Hamas.
Likewise, it remains to be seen how the Federal Reserve (Fed) assumes this information based on the next decision on the reference interest rates. In principle, different officials have already announced that it is possible that, finally, the last increase announced for this year will not be carried out.
Meanwhile in Uruguay he dollar seems to be accompanying this positive global trend. So if markets continue to react optimistically to improvements in the US economy, it could be anticipated that the currency will also appreciate in the future. local market, despite the forecasts that warn of a rather “ironed”.
The challenge for the government will be, in any case, to maintain a value that does not play against the inflationary control policies – which have allowed the inflation within the target range—but that does not further harm the competitiveness from the country.
Source: Ambito
