He global dollar rose in the early hours of Friday, in a day marked by nervousness and uncertainty: on the one hand, the cyber blackout The global crisis that affected banks, airlines and issuers worried investors; and, on the other hand, the expectation for the change of direction that the United States elections keeps the country and the world in suspense.
He dollar index The index, which measures the greenback’s performance against a basket of six major international currencies, rose 0.17% to 104.33 units, above the four-month low of 103.64 hit the day before. The index is up 0.2% for the week after two weeks of losses.
The truth is that the risk appetite declined this week, punishing technology stocks in particular, while expectations of a rate cut by the Federal Reserve in September weighed on the dollar, especially against low-interest currencies such as the yen and Swiss franc.
The huge difference between the United States rates and Japan and even, Swiss has created an opportunity for investors to sell those currencies to fund higher-yield asset purchases, such as dollar, or supercharged tech stocks or cryptocurrencies.
He and in The Japanese currency also rose after reported official purchases by Japanese authorities last week, and there were fears of more of the same on Friday. The Japanese currency, which is on track to end the week up 0.1%, was down slightly at 157.485 units per day. dollar, after learning that Japanese inflation rose for the second consecutive month.
“Although the alleged interventions do not seem to stabilize the yen, we believe that monetary policy could do so,” he said. Krishna Bhimavarapu, economist of State Street Global Advisors. “The time is approaching for decisive action by the Bank of Japanand today’s higher inflation has only made it more plausible,” he added to Reuters.
Uncertainty and nervousness in the markets
A failure in the antivirus update Azure, cloud infrastructure of Microsoft, led to a global cyber blackout which affected banks, airports, hospitals and broadcasting companies, and caused concern in the markets about the effect that such an event could have.
In this sense, although the Actions Technology stocks plummeted by up to 20%, volatility in the currency market remained contained.
On the other hand, operators remain expectant about the future of the American electoral scenario, given the confirmation of the Republican candidacy. Donald Trump, and the growing possibility that the president Joe Biden give up the race for re-election and step aside from the Democratic nomination.
Source: Ambito
