The US currency surpassed that “ceiling” for the first time in the year. At the international level it is strengthened by high interest rates.
He dollar in Uruguay finally managed to overcome the “ceiling” of 40 pesos hand in hand with a rise in the US currency globally and the announcement of the Federal Reserve (Fed) that reference interest rates will remain high and could even rise again before the end of the year.
The 0.11% rise in the dollar yesterday was enough for the price to reach the 40 peso range for the first time this year. Thus, and for the first time since December 27, 2022, the currency exceeded this value that seemed elusive and, according to data from the Central Bank of Uruguay (BCU)closed yesterday’s day at 40,019 pesos.
With this increase that was noticed in recent days and after an October that registered the largest increase “end to end” of the year —3.62% accumulated increase—, the dollar must recover just 0.13% to return to the values with which it closed last year, when it traded at 40,071 pesos. Something that, according to signs on the international scene, could happen.
The global dollar rises due to the freezing of rates
In USA and in the world, meanwhile, the dollar continues to strengthen: yesterday, the dollar index —which measures the value of this currency in relation to a basket of currencies from different countries— approached the high of the year – 107.34 in early October, driven by the increase in US bond yields -, and closed at 106.97.
This increase at a global level was also reflected in the local exchange market, and everything seems to indicate that it will continue its bullish rally. Especially after the Fed confirmed what investors were beginning to accept: the interest rates will remain high. And they could even rise again before the end of the year.
In this way, the US central bank announced yesterday the decision to keep rates unchanged in the range of between 5.25% and 5.5%its highest level since 2001. But the president of the entity, Jerome Powell did not rule out another increase in December, so the note can continue to appreciate against the Uruguayan Peso In the next weeks.
Source: Ambito
