New inflation figures will be published in the coming days, which could consolidate the imminent cut in interest rates in the United States.
He global dollar rose in early hours on Tuesday as traders await inflation data in USA due to be published later in the week, which may continue to strengthen expectations of an early interest rate cut by the Fed. Federal Reserve (Fed). In Uruguay, Meanwhile, the currency plummeted after touching 20-month highs.
He dollar index —which measures the greenback’s performance against a basket of six major international currencies— was up slightly at 104.36, after falling last week to a four-month low of 103.64 following days of scant economic data culminating in the release of the personal consumption expenditure (PCE) June, one of the favorite facts of the Fed to analyze the behavior of inflationary pressure.
Also, the reaction of the markets to the decision of the American president, Joe Biden, to withdraw from the electoral race as a candidate for the Democratic Party was moderate, although there was some correction of the so-called “Trump trade”, which has caused the dollar and bond yields to US Treasury bonds relax slightly.
For its part, the and in rose on investor reaction to comments by a senior Japanese politician, Toshimitsu Motegi, which increased the pressure on the Bank of Japan to continue raising interest rates in order to boost the currency.
In view of this, the dollar was down 0.55 percent against the Japanese currency at 156.13 yen, after falling on Thursday to a five-week low of 155.375.
In Uruguay, the dollar collapsed
In Uruguay, Meanwhile, the dollar fell 0.84% compared to Friday, closing at 40.116 pesos, according to the official exchange rate. Central Bank of Uruguay (BCU), thus cutting two consecutive days of increases and coming close to returning to the 39 pesos range.
The US currency has accumulated a monthly variation of 0.32% and an annual variation of 2.80%, since its interbank rate is 1.09 pesos above the one registered after the closing of the last exchange day of last year.
Last Friday, the greenback reached its highest level of the year and in more than 20 months after its price climbed to 40.454 pesos, something that began to generate expectations about the consolidation of a bullish rally, although the strong break on Monday could be the indication of a new behavior in the operations.
Source: Ambito
