He dollar index was heading for its first weekly decline of the year, weighed down by a decline in US bond yields due to jitters about the banking sector, as traders awaited data from United States employment that will be published on Friday to find out when the Federal Reserve (Fed) to cut interest rates.
The index, which measures the price of dollar against a basket of six major currencies, it fell 0.12% to 102.93, near its one-week low. It is thus headed for a weekly drop of 0.5%, its first week of declines in 2024, and its largest weekly loss since mid-December.
He euro rose 0.2% to $1.0885, following Thursday’s 0.49% advance, and the pound sterling rose 0.15% to $1.2761, following a 0.43% advance the previous day. While the dollar has fallen almost 1% against the and in Japanese this week, although on Friday it rose to 146.75 yen.
Concerns in banking and Treasury bonds
US regional banks fell again on Thursday, adding to the losses of the day before, when New York Community Bancorp reported increased stress on its commercial real estate portfolio.
The benchmark 10-year Treasury yield fell another 10 basis points, after giving up about 27 basis points this week. Subsequently, it traded at 3.891%.
Bond yields could get another jolt later in the day, with the release of the U.S. nonfarm payrolls report. USA. It comes after the Federal Reserve’s last monetary policy meeting, in which rates remained stable as expected, although the president Jerome Powell bucked market expectations for rate cuts in March.
Depending on the tool FedWatch According to CME, the probability that the Federal Reserve will cut rates in March is 37.5%, up from 70% a month ago. A cut in May is practically discounted.
For his part, the Bank of England held interest rates at its meeting on Thursday, helping to contain the pound’s slide, although its impact on markets was outweighed by news from USA.
The dollar in Uruguay
He dollar fell 0.23% on Thursday and was quoted at 39,074 pesos, according to data from the Central Bank of Uruguay (BCU), so the US currency opened the month lower, although resisting within the range of 39 pesos.
In any case, the dollar maintains its positive behavior so far this year, with an appreciation of 0.13% compared to the end of 2023, thanks to the 0.36% improvement that it managed to accumulate in January, which in any case fails to bring the value closer of the ticket at expectations From the market.
Source: Ambito
