Investors are adjusting short positions in the Asian country’s currency ahead of next week’s Bank of Japan meeting.
He dollar fell on Wednesday to a more than two-month low against the and in, as investors unwound short positions in the Japanese currency ahead of the meeting of the Bank of Japan next week, as investors prepare for a tightening of the monetary politics. In Uruguay, Meanwhile, the exchange rate of the US currency rose for the second time in a row.
He and in also reached its highest level since mid-May against the euro, due to the expectation that yield spreads that have made it more expensive for foreign investors to hold yen-denominated securities will narrow. Meanwhile, the dollar index, which compares the greenback with a basket of six currencies, lost 0.12% to 104.35 units.
He dollar fell 1.07% to 153.92 yen, its lowest since May 6. The euro hit its lowest price since May 8 and later fell 1.16 percent to 166.915 yen.
The fall narrowed briefly after S&P Global indicated that the composite PMI index of production of USA, which measures the manufacturing and services sectors, rose to 55 this month, the highest level since April 2022.
The main macroeconomic news of the week will be published on Thursday, with the first estimate of the Gross domestic product American second quarter, and on Friday, with the personal consumption expenditures price index, on which the Federal Reserve (Fed) to measure the inflation.
According to some sources, the Bank of Japan is likely to discuss at its meeting on July 30-31 whether to raise interest rates and present a plan to roughly halve bond purchases in the coming years.
The Fed meets on the same days, and while few expect it to begin cutting rates this month, the messages in favor of a change in September are likely to be more explicit, given months of slowing inflation and growth.
In Uruguay, the dollar rose again
At the local level, the dollar rose 0.17% compared to Tuesday and closed at 40.243 pesos, according to the exchange rate. Central Bank of Uruguay (BCU), chaining its second consecutive rise and consolidating above 40 pesos.
The US currency thus maintains its positive streak so far this month, a period in which it has accumulated an improvement of 0.64%. If we analyze the annual accumulation, the appreciation of the dollar reaches 3.13% compared to the end of 2023.
Source: Ambito
