Meanwhile, the global dollar falls due to operators’ expectations, while at the local level the currency also fell.
He global dollar fell during the day due to the renewed expectations of operators that the United States Federal Reserve (Fed)Finally, move forward with two cuts in reference interest rates this year, given less favorable employment data than expected. In Uruguay, The month began with a negative sign for the exchange rate.
He dollar fell to three-week lows after the data on the growth of employment in USA, which turned out to be slower than expected in April, with just 175,000 new jobs, below expectations that pointed to 243,000 new jobs. Likewise, the salary gains Annuals cooled, with a year-on-year increase of 3.9% in April, below projections of 4% and after rising 4.1% in March.
The unemployment ratemeanwhile, rose from 3.8% to 3.9%, although without reaching 4% for the twenty-seventh consecutive month.
This led to the dollar index —which measures the performance of the greenback in relation to a basket of six international currencies— will fall 0.51% to 104.76 units, its lowest level since April 10.
The reason is that operators see in the employment and salary data a slowdown in the Economic recovery which could directly impact the consumption and, therefore, in the inflation indices that “disappoint” the Fed and keep their authorities reluctant to move forward with the first signs of relaxation around the contractionary monetary policy. Therefore, the bets that this year there could be at least two cuts in the interest rates, they revived again; and, on the other hand, the dollar fell due to the possibility of offering lower returns in the medium term.
In Uruguay, the dollar opened lower
In Uruguay, meanwhile, the dollar fell 0.32% compared to Tuesday and closed at 38,194 pesos, according to the price of the Central Bank (BCU), so that the bill cut with two consecutive increases and is once again approaching the range of 37 pesos.
The US currency thus behaved in line with what happened globally, if one takes into account that the dollar index had fallen 0.38%, to 105.31 units. In this way, despite the monthly increase in April, the interbank accumulated a decline of 2.12% so far this year.
The current scenario of, at least, less strength on the part of the global dollar make the currency at the local level also more vulnerable to the deepening of the exchange delay, which is observed with concern among exporters and authorities.
Source: Ambito
