Analysts point to technical factors to explain the dollar’s decline, following a two-day rally of up to 1.4% against the euro after strong employment data from USA, as well as more hawkish rhetoric from the chairman of the Federal Reserve, Jerome Powell They ruined bets on an early cut in interest rates.
Bond yields United States Treasury They also fell from highs due to solid demand in a sale of new three-year bonds, which took away some support for the dollar.
The dollar falls against the euro and rises against the yen
Meanwhile, the dollar fell 0.1% to 1.0762 per euro, after falling 0.1% on Tuesday, when it hit its highest level since November 14 at $1.0722. The dollar index – which measures the currency’s performance against six major currencies, including the euro- fell 0.04% to 104.10, following Tuesday’s 0.29% decline. On Monday it had reached its highest level since November 14, at 104.60.
The fall of the Industrial production in the largest economy of the eurozone, more pronounced than expected, did not affect the euro, since “the industrial unrest of Germany It’s a familiar story,” said Chris Turner, Global Head of Markets at ING.
For its part, the dollar rose 0.08% against the yen, to 148.07 yen, after falling 0.49% on Tuesday. This currency pair tends to be extremely sensitive to movements in Treasury yields.
Analysts and operators highlight next Tuesday’s inflation data in the United States as a key test for the Fed’s rate bets. According to the tool FedWatch According to CME Group, the probability of a rate cut in March is 21.5%, up from 68.1% at the beginning of the year.
The dollar in Uruguay
He dollar fell 0.20% compared to this Monday and closed at 39,068 pesos, according to the price of the Central Bank of Uruguay (BCU), reducing the increase that had been made yesterday and approaching the range of 38 pesos again.
In this way, the banknote accumulates a decline of 0.25% for the month, while it remains positive in 2024, with a slight appreciation of 0.12%, which in any case shows a dollar quite in balance in the annual accumulated, something that does not quite find its correlation with the market expectations.
In just over a month, the dollar It is going through moments of relative balance, exchanging declines and not too winding rises that have allowed it to remain around 39 pesos so far in 2024.
Its highest value of the year was 39,439 pesos on January 9, while its lowest point was on the 23rd of that same month, when it fell to 38,685 pesos. In this way, the US currency maintains an appreciation of 0.12% in the year, with investors awaiting what happens in the future. local and international scene.
Source: Ambito
