The US currency recovered ground after the Fed’s cold words but will still close a negative week. In Uruguay, the exchange market has accumulated six days of growth.
He global dollar recovers its growth path after the impact of the boost of agents’ expectations regarding possible interest rate cuts by the United States Federal Reserve (Fed); although it is not enough to avoid the weekly drop. In Uruguay, Meanwhile, the currency continues to rise and reached its highest value in a month.
He dollar rose slightly in the early hours of Friday after the cold cloths placed by the Fed on the anxious expectations of investors for a possible relaxation of the contractionary monetary policy of the Central Bank that maintains rates at their maximum historical range. In that sense, the dollar index —which compares the price of the greenback with a basket of six other currencies of international relevance— recovered 0.2% and reached 104.73 units.
In any case, the weekly balance will not be positive, while the US currency is heading for a fall of 0.5% from end to end.
This is because speculation still continues in the market about when the Fed will reduce interest rates, amid signs of cooling of the inflation and a weakening of the US economy. In this regard, Wednesday’s data showed that consumer prices They rose more slowly than expected in April, boosting bets by traders who expect rate cuts of 46 basis points by the end of the year.
Still, several policymakers have taken it upon themselves to temper expectations and have given few clues about when rates might drop. Consequently, the declines in the dollar price were limited.
The dollar continues to rise in the Uruguayan market
In Uruguay, meanwhile, the dollar accumulates six consecutive days on the rise and recorded a new improvement of 0.14% compared to Wednesday. In this way, and according to official data from the Central Bank (BCU)the US currency closed at 38,781 pesos, its highest value in a month, when it was quoted at 39,223 pesos on April 16.
Likewise, the greenback continues in positive territory during May, with an appreciation of 1.21%; although it is still not enough to close the gap with the value at the end of 2023, with respect to which it is still 0.62% below.
In any case, we will have to see the impact that the decision made at the last meeting of the Monetary Policy Committee (Copom) maintaining reference interest rates unchanged at 8.5% may have on the stock in the coming weeks. Although a significant effect is not expected, the maintenance of the Monetary Policy Rate (MPR) in a high scenario it could retain future improvements in the local exchange rate.
Source: Ambito
