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The global dollar recovers after hitting its lowest in two and a half months

The global dollar recovers after hitting its lowest in two and a half months

Traders reacted to signs of a weakening US economy with renewed expectations of cuts from the Fed.

Photo: Reuters

He global dollar shows the first signs of recovery after a sharp fall that left it at mid-March levels, while in Uruguay, The US currency opened June in negative territory.

He dollar managed to rise slightly in the early hours of Tuesday after falling to its lowest level in two and a half months. The reasons for the collapse responded to the indications of weakening of the economy in the US, which underpinned investors’ bets on an early cut in interest rates by the Federal Reserve (Fed)despite the constant caution that the central bank authorities have shown in this regard.

In this way, the dollar index —which compares the performance of the currency with a basket of six other currencies of international relevance— rose 0.27% to 104.32 units, leaving behind the price of 103.09 that it had reached on Monday. after the publication of data on manufacturing activity and construction spending, which showed the second month of slowdown in the first case, and an unexpected decline in the second.

Now, the markets are waiting for what the Job Offers and Labor Rotation Survey (JOLTS) of USA which will be published today and will show the number of vacancies for May, another piece of information that may indicate the possible direction of the Fed’s monetary policy.

June opened negatively in Uruguay

In Uruguay, Meanwhile, the exchange market closed its first day of the month in negative territory, after the dollar fell a minimum of 0.02% and was trading at 38,786 pesos, according to data from the Central Bank (BCU).

The greenback appreciated 1.24% from end to end in May, but still has an accumulated depreciation of 0.60% at an annual level, after falling 0.24 pesos since the last exchange day of last year.

On Friday, May 31, dollar It reached its highest value in a month and a half when it touched 38,792. This also meant that the US currency closed the month with a value above what the market expected, according to the latest Economic Expectations Survey (EEE) of the BCU, which had indicated a probable price of 38.61 pesos.

Source: Ambito

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