He dollar approached its highest level of the year against a basket of currencies and futures fell ahead of the monetary policy decision of the United States Federal Reserve (Fed) to maintain interest rates in the current range of 5.25%-5.50%, due to the recent and “disappointing” inflation readings in the North American country.
The latest upward movement of the dollar came after labor cost growth in USA during the first quarter were higher than expected, causing a rise in Treasury bond yields and leading markets to further reduce their bets on rate cuts by the Fed.
Other indicators
The reference performance of Treasure The 10-year was trading at 4.657%, just below the mid-April high of 4.739%, its highest level in five months, after rising 7 basis points (bps) the previous day.
The European markets fixed income markets remained closed for the May 1 holiday, as did most of the European stock markets and those of China, Hong Kong and much of Asia.
The futures of S&P 500 US fell 0.4%, and US futures Nasdaq They lost 0.65%, as chip stocks led the losses after disappointing results.
Of the stock markets that were listed, the British FTSE rose a little, staying close to its last intraday historical high reached the day before, and the Japanese Nikkei fell 0.34%.
The other focus of attention in the currency markets is the Japanese yen. On Monday, the currency fell to 160 per dollar, its lowest level since 1990, before strengthening several times to 154.4 per dollar, with traders pointing to likely official intervention.
What happens at the local level?
While on May 1 the Uruguayan markets did not open for Workers’ Day, on the last day of April, the currency managed to rise 0.05%, closing at 38.318 pesos, according to the official price of the Central Bank of Uruguay (BCU), scoring its second consecutive rise and entering the range of 38 pesos.
The greenback accumulated a monthly increase of 2.04% throughout April, although it has an accumulated depreciation of 1.80% at an annual level, after falling 0.70 pesos since the last exchange day of the year 2023.
Source: Ambito
