He global dollar rose 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).
He dollar index The U.S. dollar —which measures the greenback’s performance against a basket of six major international currencies— rose 0.1% to 104.45, after falling to a four-month low of 103.64 last week 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 lost 0.9% against its Japanese counterpart to 155.625 yen, after hitting a five-week low of 155.375% against the Japanese currency at 156.13 yen on Thursday. Meanwhile, the euro fell 0.4% to $1.0851 and the pound sterling, 0.2% to $1.2903.
In Uruguay, the dollar rebounded
In Uruguay, Meanwhile, the dollar improved 0.14% compared to Monday and closed at 40.173 pesos, according to the exchange rate. Central Bank of Uruguay (BCU), recovering from Monday’s decline.
The US currency thus achieved an increase of 0.46% so far this month, while it appreciated by 2.95% compared to the last day of 2023.
Source: Ambito
