Dragged by the global fall and a greater demand for pesos in the local exchange market, the US currency recovered a rise of 0.2%.
He dollar in Uruguay experienced a sharp drop in the last two days which, however, was not enough for the week to close with a negative balance. In any case, the currency moved away considerably from the 40 pesos, after having been a few cents away from surpassing that “ceiling”.
Five consecutive days of increases had left the dollar on the verge of reaching 40 pesos, a value that it only achieved once this year, last November 1st. However, two consecutive downward closings plummeted the price of the US currency to 39,388 pesos with which the week ended, according to official data from the Bank Central of Uruguay (BCU).
Although the weekly result was positive – from “end to end”, the banknote accumulated a 0.2% improvement in its value—, in the last two days the dollar fell 1.44%. This was due to the strong losses it suffered: 0.80% on Thursday and 0.64% on Friday, which made it fall from 39.96 pesos to just below 39.4 pesos.
In December, meanwhile, it still accumulates a positive variation of 0.69%, while in the year, the devaluation is 1.70%.
Why did the dollar rebound?
The lowering of dollar after a brief bullish rally, it is mainly due to the behavior of the currency globally, which had a week of sharp decline: the dollar index was at 103,703 units on Monday, and went down to 101,578 units on Thursday —although it closed the week with a slight recovery that raised it to 102,225 units.
This means that it fell by 2.05%, while the final weekly decline was 1.42%.
The reason for this negative behavior was the announcement of the United States Federal Reserve (Fed) that the cycle rate cut reference interest rate is about to begin, bringing forward investor expectations to the first quarter of 2024.
At the level of local exchange marketMeanwhile, there is also a fundamental factor that affects the price of the dollar: December is a month where the payment of the half bonus, so the demand for pesos is usually higher, so the value of the US currency falls accordingly.
Source: Ambito
