He global dollar remained stable on Thursday after touching eight-month lows. Black MondayMeanwhile he and in Japanese stocks recovered slightly on Thursday, adding to investor unease.
He dollar index was trading stable at 103.12, after having touched an eight-month low of 102.69 on Monday. euro and the pound also remained stable.
He and in has risen 11% since hitting a 38-year low in July, helped by government intervention, a surprise rate hike by the Fed and Bank of Japan (BoJ) and the slowdown of the employment in the United States that has weighed on the dollarwhich fell 0.3% to 146.26 yen today.
The rally has forced investors to drastically unwind carry trade operationsin which they borrow cheaply from Japan to buy dollars and other currencies to invest in higher-yielding assets, helped trigger a 12% drop in Japanese stocks on Monday.
The performance of the Treasury benchmark bond The 10-year U.S. bond fell 6 basis points (bp) to 3.909%, after rising on Wednesday following a weak debt auction.
The index is down 9 basis points on the week after hitting its lowest level since June 2023 on Monday as traders fled to safe haven assets and increased their bets on U.S. rate cuts. US Federal Reserve (Fed). Yields move inversely to prices.
“In my view, the rate market (for government bonds) has reached levels even higher than the equity market,” said Carl Hammer, global head of asset allocation at SEB.
He added that markets are expecting too many interest rate cuts from central banks. “When I look at most of the growth indicators that we follow, I’m not too worried about them,” he said.
Traders on Thursday had expected the Federal Reserve to cut interest rates by around 110 basis points this year.
The dollar in Uruguay
He dollar fell 0.24% on Wednesday in the Uruguayan exchange market, closing at 40.405 pesos, according to the official exchange rate. Central Bank of Uruguay (BCU)), chaining its second consecutive day of decline and going through the week in negative territory, although without surprises within the 40 pesos range.
The US currency has accumulated a weekly decline of 0.13% compared to Friday, a monthly variation of 0.33% and an annual variation of 3.54%, since its interbank rate is 1.38 pesos above the one registered after the close of the last exchange day of last year.
Source: Ambito
