He dollar hit its highest level since November on Thursday, after the inflation to the consumer in USA was higher than expected, frustrating expectations of an interest rate cut by the Federal Reserve (Fed) in June.
He dollar indexwhich compares the greenback with six other currencies, rose slightly to 105.26 units, its highest level since November.
Investors, who had expected a rate cut in June, now see it as more likely that the easing cycle will begin in September.
The minutes of the United States Federal Reserve (Fed) showed the concern of officials about the possibility that progress in inflation has stalled and a longer period of restrictive monetary policy is necessary to control it in the world’s largest economy.
He and in was trading stable at 153.26 units per dollar, still at its lowest level since 1990, after a heart-stopping Wednesday in which the dollar It advanced almost 1% against the Japanese currency.
He euro fell 0.13% to $1.07267, following a 1% drop on Wednesday following US data. The pound sterling was trading flat at $1.2534, after losing 1.1% the previous day.
Signs from Europe
Investors’ attention was focused on US producer price data and the US monetary policy meeting. European Central Bank (ECB), looking for signs on whether Fed and ECB policies will begin to diverge by the end of the year.
The ECB decided to keep the reference rates unchanged at around 4.5%. The market was attentively awaiting references to a path of cuts after policy makers have given multiple clues, some quite explicit, that the entity will begin the reductions at its June meeting.
However, this Thursday the Central Bank clarified that it “will continue with a data-neutral and meeting-by-meeting approach to determine the appropriate level and duration of the restriction”, without committing in advance to a particular rate path.
In Uruguay, the dollar rose
He dollar It rose 0.11% on Wednesday and closed at 38,538 pesos, according to the official price of the Central Bank of Uruguay (BCU), accumulating a streak of seven increases in the last nine wheels.
In this way, the US currency accumulates a positive April, with a growth of 2.63%, which could be accentuated after the market begins to consider that the Federal Reserve will wait until September to raise the interest rate.
In moments where the dollar accumulates a depreciation of 1.24% so far this year, which generates strong criticism from the agro-export sector for the exchange delaythe BCU defined a cut of 50 basis points in the Monetary Policy Rate, which thus remained at 8.5%.
Thus, after 2023 where the monetary authority led the rate cut at the regional level and after a first meeting without changes in 2024, the Central Bank sent a clear signal that could strengthen the greenback, if the market analyzes this surprising reduction as a disincentive to invest in pesos and turn to the US currency.
Source: Ambito
