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The global dollar continues to advance amid the divergence of expectations for rates

The global dollar continues to advance amid the divergence of expectations for rates
The global dollar continues to advance amid the divergence of expectations for rates

The US currency hit eight-week highs against the yen and five against the pound sterling, while in Uruguay it reached its highest value of the year.

Photo: Reuters

He global dollar rose in the early hours of Friday to hit an eight-week high against the yen, and a five-week high against the pound, while expectations of a possible interest rate cut by the United States Federal Reserve (Fed) diverge between the authorities of the Central Bank and the operators. In Uruguay, Meanwhile, the currency reached its highest value of the year.

He dollar index —which compares the performance of the greenback against a basket of six internationally relevant currencies— rose 0.41% during the trading session. Asia, thus erasing the negative results of the week. This behavior was influenced by the second consecutive rate cut by the Swiss National Bank and the signs of Bank of England of a reduction of the reference in August; although the possible manipulation of the exchange rate by the Bank of Japan —and its placement on the list of countries observed for this by the United States Treasury— also had influence.

In the US market, meanwhile, the dollar index rose 0.2% to 105.79, holding steady after two consecutive weeks of gains. In this scenario, the caution and patience of the Fed regarding a rate cut, and the high expectations of other institutions and operators who see the nearness of easing of monetary policy United States.

For its part, the pound sterling fell to $1.2637, near its lowest since mid-May. Meanwhile he euro fell 0.1% to $1.0686 after a series of preliminary surveys in June showed service sector activity in France contracted this month, while activity in the German economy slowed.

Record in the year in the Uruguayan market

In Uruguay, meanwhile, the dollar reached its highest value of the year after increasing this Thursday by 0.26% compared to Tuesday, closing at 39.468 pesos, according to the official price of the Central Bank (BCU)thus chaining three consecutive days of rise within the range of 39 pesos.

The North American currency accumulates a variation of 1.74% so far in June, and a variation of 1.14% at an annual level, since its price is 0.45 pesos above that registered after the close of the last day exchange rate from last year.

Among the reasons for this escalation in the exchange rate, the rebound in the global dollar and the devaluation of the real stand out; the outlook for the Fed’s next decision; and the Uruguayan exchange market itself.

Source: Ambito

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