Fear of intervention on the yen and the Fed’s doubts about easing monetary policy while inflation cools pushed the price down.
He global dollar fell slightly in the early hours of Tuesday amid fears over a Japanese intervention in the yen, on the one hand, and the expectation regarding the publication of the US personal consumption price index (PCE)the inflation measure preferred by the United States Federal Reserve (Fed), for the other. In Uruguay, Meanwhile, the currency lost a week’s increase in one day.
He dollar fell on Tuesday from the key level of 160 yen, as fear of intervention by the Japanese authorities discouraged traders from punishing the Japanese currency too much against other currencies.
In this way, the greenback fell 0.1% against its Japanese pair, to 159.43 yen, operating within a narrow range, since operators remain wary of reaching the level that caused the monetary intervention of Tokyo worth 9.79 trillion yen ($61.33 billion) in late April and early May.
This also prevented the yen from setting new lows against other currencies. “The market is showing (…) that it is nervous, that it is very on edge due to this situation,” he told the Reuters agency. Chris Westonof Pepperstone.
In the general market, meanwhile, the dollar fell slightly before publication on Friday PCE, while operators and authorities of the Fed They continue to struggle between diverging signals and the possibility that inflation will continue to cool.
The euro, which has come under pressure from political turmoil in France after the unexpected call for early elections by the president Emmanuel Macron At the beginning of the month, it was down 0.1% at $1.0721, a monthly loss of 1%.
Sharp decline for the dollar in Uruguay
In Uruguay, meanwhile, the dollar fell 0.87% compared to Friday, closing at 39,308 pesos, according to the official price of the Central Bank (BCU)thus ending four consecutive days on the rise and losing ground within the range of 39 pesos after falling from its maximum value in more than six months.
The US currency has accumulated a variation of 1.33% so far in June, and another of 0.73% at an annual level, since its interbank price is 0.29 pesos above that registered after the closing of the last exchange day last year.
Source: Ambito
