He market opens this Monday after a week it closed lower for the second consecutive time, making it move away from the 40 peso range; In turn, the dollar reached global highs due to the behavior of the yen.
On Friday, the US currency reached its lowest value in almost a month, as October 11 It was worth 39,733 pesos, the last day where it remained at a similar level. Furthermore, with this new setback, the dollar accumulates a depreciation of 0.42% so far this month.
Meanwhile, after two consecutive days of decline, the dollar accumulates a decrease of 0.66% so far this year after two quite positive months, in a context of exchange delay. Meanwhile, if analyzed in the year-on-year comparison, the drop is 0.43%.
The misalignment of the exchange rate continues to arouse criticism from some sectors and was recently confirmed Margarita Varela, executive secretary of the Union of Exporters of Uruguay (UEU), who stated that “it continues to be among the main concerns” of the sector.
What about the international market?
The dollar hit its highest level in more than a year against the yen on Monday, supported by reduced expectations of interest rate cuts by the Federal Reserve American for next year.
The Japanese Minister of Finance, Shunichi Suzuki, stated that the government will continue to monitor the foreign exchange market and respond appropriately. The comments had little immediate impact on the yen, which has lost almost 14% against the dollar this year. For its part, the pound sterling rose slightly after the British prime minister’s reshuffle of key government positions, Rishi Sunak.
The dollar climbed to 151.88 yen, its highest level since October 2022, and later advanced 0.15%. Last week it improved about 1.4%, in its biggest weekly advance against its Japanese peer in three months.
Several monetary authorities of the Fed, including its chairman, Jerome Powellsuggested last week that the battle against inflation may not be over yet, prompting a reduction in market rate cut bets that sent yields higher. Treasury bond in the short term and supported the greenback.
The dollar index, which compares the us currency with a basket of six prominent currencies, was trading with a slight increase, at 150.80 units. The euro rose slightly to $1.0684, while the pound rose 0.2% to $1.2254. The British currency advanced 0.2% against the euro, standing at around 87.24 pence, after learning of the changes in the composition of the government of the United Kingdom.
Source: Ambito
