Traders reacted to signs of a weakening US economy with renewed expectations of cuts from the Fed.
He global dollar showed the first signs of recovery after a sharp fall that left it at mid-March levels, while in Uruguay, the US currency accumulates an increase of
He dollar managed to rise slightly 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 0.03% to 104.140 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.
The dollar rose 0.36% and is around 39 pesos in Uruguay
In Uruguay, the dollar rose 0.36% compared to Monday, closing at 38.925 pesos, according to the official price of the Central Bank of Uruguay (BCU)fully recovering from the previous day’s decline and being on the verge of returning to the 39 peso range.
The North American currency has accumulated a variation of 0.34% so far in June, although it still has an accumulated depreciation of 0.25% at an annual level, since its price is 0.10 pesos below that recorded during the last exchange day of last year.
Source: Ambito
