He dollar hit its one-week low on Thursday as economic data reignited expectations of an early rate cut in USAwhile the battered and in It barely changed against the other major currencies.
The unexpected slowdown in services growth in the United States had caused the dollar on Wednesday. However, it remains the best-performing G10 currency so far this year, as expectations for rate cuts have moderated in recent months.
The authorities of the Federal Reserve (Fed)including the head of the US central bank, Jerome Powellcontinued to insist Wednesday on the need for more discussions and data before cutting interest rates, a move that financial markets They expect it to occur in June.
He dollar index, which measures the currency against six rivals, was down 0.15% at 104.08 after touching 104.05, its lowest level since March 26. It is up 2.7% this year, as market expectations of about 150 basis points of rate cuts in 2024 have been cut in half.
The yen approached its 34-year low against the greenback as the historic monetary policy shift of the Bank of Japan to end eight years of negative interest rates did not serve to strengthen the currency. The yen was virtually flat at 151.76 against the dollar, after hitting 151.975 last week.
The rate outlook, with 10-year yields in USA above 4% and those of the yen still close to zero, it is keeping the cash of large Japanese investors abroad, where it can obtain better returns, depriving the yen of the support of repatriation flows.
He eurowhich rose 0.6% on Wednesday, gained another 0.2% on Thursday and returned to the center of a range that it has maintained for a year at $1.086.
The dollar in Uruguay recovered 1.85% of its value in three days
He dollar added its fourth consecutive day to the rise on Wednesday, rising 0.33% and closing at 38.247 pesos, according to the price of the Central Bank of Uruguay (BCU), so that the US currency is beginning to leave behind a more than negative March.
Thus, in just three days of April, the banknote appreciated 1.85% and began to reduce the sharp fall it had last month, even exceeding the market expectation that the exchange rate will be around 38 pesos at the end of March.
However, the dollar accumulates a depreciation of 1.99% with respect to the end of 2023 and the exchange delay once again became the central topic of the crazy economic agenda. The Rural Federation weeks ago demanded a currency at 58 pesos, while the president of the Confederation of Business Chambers, Diego O’Neill, considered today that the delay in the exchange rate is one of the most important problems.
Source: Ambito
