The common European currency recovered from more than a month-long lows following political turmoil.
He dollar fell this Monday, while the euro gained ground and recovered after hitting lows in more than a month as a result of political turmoil in Europe.
In recent days, investors have been contemplating the risk of a budget crisis at the heart of the Euro zoneas far-right and left-wing parties gain momentum ahead of snap parliamentary elections in Franceputting pressure on the centrist government of the president Emmanuel Macron.
Even after French financial markets suffered a brutal sell-off late last week, French policymakers European Central Bank They do not appear to have plans to discuss emergency purchases of French bonds, five sources told Reuters.
He euro It rose more than 25% to $1.0734, after falling to its lowest level since May 1 on Friday at $1.06678. In addition, last week it recorded its largest weekly drop since April, 0.88%. For his part, the dollar index, which compares the US currency to a basket of six other currencies, fell 0.20% to 105.33.
The president of the Minneapolis Federal Reserve Bank, Neel Kashkari, He said on Sunday that it was a “reasonable prediction” that the US central bank would cut interest rates once this year and wait until December to do so.
The Fed released updated projections last week showing that the median forecast among 19 U.S. central bankers was for a single interest rate cut this year.
The dollar strengthens in the range of 39 pesos at the local level
At the local level, the interbank dollar opened the week higher after rising 0.21% this Monday, closing at 39.338 pesos, thus completely recovering from its previous decline and establishing itself in the range of 39 pesos.
The North American currency has now accumulated four weeks in positive territory and a variation of 1.41% so far in June, as well as a variation of 0.81% at an annual level.
Source: Ambito
