He global dollar rose on Wednesday pending key economic data in USA which will be known later in the day, while investors are also awaiting a monetary policy meeting in Canada which could trigger a cycle of interest rate cuts.
Investors are awaiting US services data on Wednesday and more employment figures later in the week. The dollar has fallen to nearly two-month lows as signs of a weakening U.S. economy on Monday reinforced the view that the Federal Reserve should cut rates sooner.
He Bank of Canada It meets one day before the European Central Bank meeting on Thursday. Canada’s annual inflation rate slowed in April to 2.7%, its lowest level in three years, prompting money markets to view a rate cut as more likely this month.
The dollar index rose 0.19%, to 104.36 units, after touching 103.99 the day before, its lowest since April 9.
“The most important thing is that markets are pricing in the Fed to lower rates almost as much as the ECB,” said Themos Fiotakis of Barclays. “The divergence in fundamentals is not appreciated. However, the dynamics of growth and inflation will make the Fed much less cautious than other central banks.”
Meanwhile, the euro fell 0.1%, to 1.086 dollars, and the yen lost 0.8%, to 155.90 units per dollar. The Mexican peso stabilized after collapsing nearly 4% against the dollar and almost 6% against the yen since the leftist Morena party was re-elected and, in coalition, is about to reach a two-thirds majority in both chambers of the Congress.
The dollar rose 0.36% and is around 39 pesos in Uruguay
In Uruguay, the dollar rose 0.36% this Tuesday 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
