This Friday, investors reduced bets that the United States Federal Reserve (Fed) will cut interest rates before September, after a US government report showed that many more jobs were created in May job than expected.
Rate futures Fed They imply only a 52% chance of a rate cut by September following the release of the report that showed employers added 272,000 jobs last month.
Before the report, futures contracts that adjust to the official interest rate of the Federal Reserve showed a 69% chance of an interest rate cut from the current range of 5.25%-5.5% in September, compared to a 31% chance of the first cut occurring at the end of the year. .
How does the Federal Reserve policy impact Uruguay?
The maintenance of high interest rates by the Federal Reserve has three consequences on the financial market of the Uruguayaffecting the exchange rate, investments and global bonds in dollars.
High dollar yields usually generate more demand for the greenback, which increases its value globally, also having an impact on the local exchange market.
Investments can also be impacted by a dollar strong as a consequence of high interest rates in the United States, as the currency reemerges as a safe haven asset. On the other hand, the emerging markets They become less attractive, which generates not only a lower inflow of investments, but can also trigger capital outflows.
The maintenance of rates is part of the Fed It also has its correlation in an increase in United States Treasury bonds (treasuries). For UruguayThis means an increase in the price of assets in dollars. Among them, nothing more and nothing less than debt in dollars.
Source: Ambito
