24hoursworld

Global dollar recovers in reaction to Fed announcement

Global dollar recovers in reaction to Fed announcement
Global dollar recovers in reaction to Fed announcement

He dollar The global economy rose on Thursday, recovering part of the losses caused on Wednesday by inflation data in USA weaker than expected and after the Federal Reserve (Fed) forecast a single interest rate cut this year.

In the exchange market, the price was relatively moderate compared to the previous day, when the dollar lost almost 1% after the publication of the Consumer Price Index (CPI), before ending the day with a loss of 0.5%, which is still the largest in two weeks.

“I think the reaction to the CPI was a little overblown. It was almost a relief that it wasn’t worse. And that’s what triggered such a strong knee-jerk reaction,” he said. Fiona Cincotta, from City Index. “We saw how the dollar declined when we heard the news from the Federal Reserve and today it also tends to rise. In the cold light of day, perhaps the inflation data has not been as ‘refreshing’ as the market initially thought” .

The inflation accelerated to an annual rate of 3.4%, still well above the 2% target of the Fed. Later on Wednesday, the US central bank kept the funds rate at 5.25-5.5%, and policymakers’ average projection for the number of cuts this year was reduced to just one, down from the third of March.

What happens to the euro amid political tension in France?

He euro It had its biggest daily rise of the year on Wednesday, after the US inflation figures. The European currency has been subjected to intense volatility this week due to political uncertainty in France, where the president, Emmanuel Macron, called early elections after his poor result in the European Parliament elections.

He euro, which touched six-week lows this week, fell 0.2% to $1.0788, after gaining 0.64% the day before. Meanwhile, the pound sterling, which also faces the political risk of the British general elections on July 4, fell 0.2% to $1.277, after appreciating 0.5% in the previous day.

The dollar in Uruguay, with ups and downs

This Wednesday the dollar rose 0.23% compared to Tuesday, closing at 39.179 pesos, according to the official price of the Central Bank of Uruguay (BCU)and continues to operate with ups and downs within the range of 39 pesos, just shy of exceeding its maximum value in almost two months.

The US currency has accumulated a variation of 1.00% so far in June, and a variation of 0.40% at an annual level, since its price is 0.16 pesos above that registered after the close of the last day. exchange rate from last year.

Source: Ambito

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest Posts