The European currency is affected by the political crisis in France, and the greenback took advantage of the momentum, supported by bets on a first Fed cut in September.
He global dollar rose in the early hours of Friday, driven by the weakness of the euro in the midst of the political crisis in France, and while operators wait for good news from the Federal Reserve (Fed). In Uruguay, Meanwhile, the US currency hit its highest in almost five months.
He dollar index, which compares the performance of the greenback with a basket of six other currencies of international relevance, rose 0.3% on the day and 0.6% on the week, reaching 105.57 units.
Although the United States employment data —published on Thursday—contributed to this appreciation amid increased bets that the Fed could begin its cycle of easing monetary policy and, therefore, cutting interest rates in September; For analysts, the euro weakness It was the main factor that drove the price.
In this regard, the euro was headed for its biggest weekly drop in two months against the dollar, with a decline of 1% – 0.4% on the day – due to the political unrest in France that had a hard impact on the markets of that country.
Maximum of almost five months in Uruguay
In the local exchange market, meanwhile, the dollar reached its highest value in almost five months after rising 0.26% and closing at 39.279 pesos, according to the price of the Central Bank (BCU).
Following the Fed’s decision to keep interest rates high for longer, the greenback accompanied this trend in the local market and has accumulated an improvement of 1.26% so far this month, while the appreciation of the dollar is of 0.66% compared to the end of 2023.
By reaching 39,279 pesos, the currency exceeded the 39,223 pesos it had marked on April 16 and to reach a higher value we must go back to the beginning of the year, when on January 18 the interbank rate reached 39,348 pesos.
Source: Ambito
