He global dollar fell on Monday, as Friday’s jobs report in USA fueled bets that the Federal Reserve may still cut interest rates several times this year, while the banknote in Uruguay A negative month began with a drop of 0.30%.
In the international market, the and in last week recorded its largest weekly advance since the beginning of December 2022, after two episodes of alleged intervention by Tokyo to move the currency away from a 34-year low of 160.245 units per dollar. During the week it advanced 3.5%, but during the session it lost 0.5%, to 153.74 units.
Both the Japanese and British markets will be closed for holidays on Monday, which will likely translate into lower volume, but Japanese authorities chose last week’s calm periods to intervene in the currency market, so traders They are on high alert.
The impact of employment data
Friday’s data showed that job growth in USA slowed more than expected in April and annual wage growth fell below 4% for the first time in almost three years, while signs of a cooling labor market increased optimism that the Fed could engineer a “soft landing” for the economy.
The Fed held rates steady at the end of its two-day policy meeting last week, as expected, but signaled that it remains leaning toward eventual cuts, even if they take longer to arrive than initially expected. “The trend towards the weakening of the dollar began with the Fed and its president, Jerome Powellwhen he basically closed the door on further rate hikes,” he said Dane Cekov from Nordea.
He dollar index, which compares the greenback with a basket of six prominent currencies, was trading at 105.06 units, after having hit a more than three-week low of 104.52 on Friday. The index is up almost 4% this year, but fell almost 1% last week.
He euro was last trading at $1.0769 and sterling rose 0.2% to $1.2575 ahead of the Bank of England’s policy announcement on Thursday, in which rates are expected to rise. maintain at 5.25%.
The dollar in Uruguay
Meanwhile, from this side of the continent the dollar fell 0.30% this Friday compared to Thursday and closed at 38,078 pesos, falling to minimum values of just over a month and remaining on the edge of the range of 37 pesos, according to the price of the Central Bank of Uruguay (BCU).
In this way, the Uruguayan Peso It strengthens against the US currency, which, after an improvement in April, is going through the beginning of the month with a decline of 0.63%. That decrease of dollar It reaches 2.42% if compared to the last exchange day of 2023.
For its part, on the reference board of the Republic Bank (BROU)he dollar Retail ticket was offered at 36.90 pesos for purchase and 39.40 pesos for sale. For its part, the preferential value of eBROU dollar It was at 37.40 pesos for purchase and at 38.90 pesos for sale.
Source: Ambito
