The US currency fell amid an unusually strong yen and as traders looked to ease US monetary policy.
He global dollar fell in the early hours of Wednesday amid increasingly direct signals from the United States Federal Reserve (Fed) regarding an early reduction of the interest ratesand the possibility that the Bank of Japan intervene once again and in to prevent the national currency from remaining at historic lows. Uruguay, Meanwhile, the currency broke a positive streak of two consecutive days.
He dollar index —which compares the performance of the greenback with a basket of six internationally important currencies— fell 0.46% to 103.75 units, dragged down by several factors. On the one hand, the fact that the Fed is “getting closer” to feeling comfortable to start cutting interest rates, according to the president of the monetary authority of New York, John Williams.
In this regard, and although there is a lack of data confirming the trend of inflation slowdown before the July meeting, he noted that there have already been “a few good months”, in line with the statements of Jerome Powell at the beginning of the week that the second quarter readings “add some confidence.” This led to the dollar will fall in the opposite direction to operators’ expectations.
But the actions of the Bank of Japan are also having an impact on the US currency. In fact, the and in rose sharply on Wednesday, in what traders suspected could be the result of another intervention by Japanese authorities to shore up the currency, which was trading at multi-decade lows.
In this way, the dollar fell 1% against the Japanese currency to 156.75 yen, a move traders attributed to Japan’s intervention in the exchange rate, even though the Ministry of Finance Japan did not respond to requests for comment.
In Uruguay, the dollar ended with two positive days
In Uruguay, Meanwhile, the dollar fell 0.01% compared to Monday, closing at 40.141 pesos, according to the official exchange rate. central bank (BCU), thus breaking two consecutive days of increases, although continuing its operations in the 40 pesos range, where it has been for five days in a row.
The US currency has accumulated a monthly variation of 0.38% and an annual variation of 2.87%, since its interbank rate is 1.12 pesos above the one registered after the closing of the last exchange day of last year.
Source: Ambito
