The European currency was affected by the political crisis in France and the greenback took advantage of the momentum.
He global dollar rose this 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), while in Uruguay, The US currency fell slightly, but reached its fourth consecutive weekly rise.
He dollar index, which compares the performance of the greenback with a basket of six other currencies of international relevance, improved 0.3% on the day and 0.6% on the week, reaching 105.51 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.
The euro, weak due to the situation in France
In this regard, the euro recorded its biggest weekly drop in two months against the dollar. The currency fell 0.34%, to $1.0699, its lowest since May 1, to suffer a weekly decline of 0.95%, the largest since April, amid concerns that a new government will worsen the situation prosecutor of France, as early parliamentary elections approach.
French markets suffered another brutal liquidation, as political uncertainty unleashed the biggest weekly rise in the premium investors demand to hold French public debt since 2011 and bank shares plunged on Friday.
The French Minister of Economy, Bruno Le Maire, He said on Friday that the eurozone’s second-largest economy risks suffering a financial crisis if the far right or left wins, due to their strong spending plans.
“At both ends of the French political spectrum, the parties that are campaigning are fiscally expansionist,” he said. Karl Schamotta, of Corpay in Toronto. “Markets are primarily responding to additional fiscal stress.”
Meanwhile, the and in hit its lowest level in six weeks against the dollar, before recovering, after the Bank of Japan surprised the markets with a cautious update of its monetary policy. Thus, the dollar advanced 0.17%, to 157.29 yen, after touching 158.26, its highest since April 29.
Source: Ambito
