Globally, the currency is on track to close its biggest monthly rise since September, while traders wait for news from the Fed.
He dollar in Uruguay continues its bullish streak, placing itself more firmly in the range of 39 pesos while international markets set their eyes on what could define—and announce—the United States Federal Reserve (Fed) at the end of today’s monetary policy meeting.
He dollar It is going through a good time in recent days, both nationally and internationally. In the Uruguayan market, it closed its fifth consecutive day on the rise, with an increase of 0.31% that allowed it to reach a price of 39,171 pesos, according to the Central Bank of Uruguay (BCU).
With this recent behavior, the US currency regains the good direction with which it began the year, which was interrupted by strong daily declines that even took it to the range of 38 pesos for the first time since December 1 . Likewise, it reversed a Loss of value which reached 0.82% in January and now accumulates a positive variation of 0.38%, within hours of the closing of the last exchange day of the month.
The global dollar, expectant for the Fed
Meanwhile, internationally, the markets are waiting expectantly for the conclusion of a new meeting of the Federal Open Market Committee (FOMC)in which the Fed will decide what will happen to the reference interest rates this year.
The general consensus is that, although the central bank authorities will not announce changes in rates – repeating the decision of the last meeting -, they will give signals about when the first cut could occur, based on the good returns that the American economy is proving.
In that scenario, the dollar index rose again at Tuesday’s close – 0.1%, to reach 103.51 units, a seven-week high – and is headed for its biggest monthly gain since September, with an increase of 2.1% compared to the basket of the world’s six main currencies so far in the first month of 2024.
This, however, is mainly due to the moderation of market expectations – that of betting on a 73% chance that the Fed made the first cut in March they went to only 43%—; so the announcements of the president of the organization, Jerome Powell could reverse this result, depending on how traders receive the news.
At the moment, projections indicate that the first reduction movements will occur at the FOMC meeting scheduled for April 30 and May 1.
Source: Ambito
