The global dollar falls after achieving its biggest daily rise in the month

The global dollar falls after achieving its biggest daily rise in the month

The minutes of the last Fed meeting ruined traders’ bets on at least two interest rate cuts in the remainder of the year.

Photo: Reuters

He global dollar fell slightly in the early hours of Thursday as investors finish assimilating the slowdown in their bets after the United States Federal Reserve (Fed) put on the table of possibilities only a cut in reference interest rates for the remainder of the year. Meanwhile in Uruguay The currency ended a three-day negative streak.

He dollar fell 0.15% after having registered its maximum daily percentage increase of the month on Wednesday. In this way, the dollar index —which compares the performance of the greenback with a basket of six other currencies of international relevance— fell to 104.7 units.

Yesterday, the publication of the minutes of the Fed Regarding the last meeting of the Federal Open Market Committee (FOMC) They showed insistence on achieving 2% inflation in the medium term even though this could take longer than expected to happen. So the possibility of rate cuts has diminished considerably to, hopefully, a low for the year; while some authorities even expressed themselves in favor of re-implementing some go up

Consequently, investors’ expectations about a easing of monetary policy strongly contractive collapsed, and the dollar had its biggest daily rise of the month. Although he couldn’t hold his best at the start on Thursday.

End of the short negative streak in Uruguay

In Uruguay, meanwhile, the dollar It rose and ended the three negative days that it had been dragging on and that had placed it close to the 37 peso range. Driven by the rise globally, the US currency increased 0.47% and closed at 38.466 pesos, according to the official price of the Central Bank (BCU).

In this way, the greenback already accumulates a monthly increase of 0.39% in May, although it still maintains a accumulated depreciation of 1.42% at an annual level, after falling 0.56 pesos since the last exchange day of 2023.

Source: Ambito

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