The dollar remains stable between the global rise and the fall in Brazil

The dollar remains stable between the global rise and the fall in Brazil
November 8, 2023 – 11:05

The US currency did not have significant variations, driven by the improvement in the Brazilian real and the recovery of the dollar index worldwide.

He dollar in Uruguay It remains relatively stable despite the fact that the world, after a negative week, is beginning to recover. In parallel, the Brazilian real continues to strengthen.

With a drop of just 0.02%, the markets agree that the dollar It remained stable at the close of yesterday’s trading, in relation to Monday’s trading. Thus, the US currency closed at 39,918 pesosaccording to the official quote of the Central Bank of Uruguay (BCU)and is still relatively close to being able to return to the 40 peso range, where it could only remain one day.

With this behavior, November has been a month opposite to October: at the moment, the dollar accumulates a decline of 0.14%, while in 2023 the drop is 0.38%. In any case, the price is in line with market expectations, where a value of the currency equivalent to 40 pesos is expected in December.

What is going on in the world?

Meanwhile, and after a week that marked the worst weekly drop since Julyhe global dollar continues his path of recovery—at least momentarily—and the dollar index keep going up.

This indicator, which compares the strength of the dollar in relation to six other main currencies in the world, it closed yesterday at 105,373 units; while today it opened higher in 105,450 units.

Although this rise should also be seen at the local level, the behavior of the dollar in Brazil, the main reference market for Uruguay, operated in the opposite direction: yesterday fell 0.67%, while in the month it has fallen by 3.77%. This also influences the fact that the national price does not immediately follow the global dollar.

Meanwhile, the president of the Booking United States Federal (Fed), Jerome Powell will speak between today and tomorrow, and attention will focus on whether he maintains the more moderate tone he adopted after the central bank’s two-day meeting last week or whether, instead, internal divergences in the Federal Open Market Committee (FOMC). Comments from other Fed policymakers will also be evaluated for signs on whether they expect new rate increases.

The data from consumer price inflation corresponding to October that will be known next week will be key to determining what can happen to the dollar in the remainder of the month.

Source: Ambito

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