He global dollar was steady in early Friday, though it was near a one-week high after the biggest drop in jobless claims in USA in almost a year to dispel fears of an imminent economic recession in the North American country. Despite the bad news with which it opened the week, the employment data on Thursday, stronger than expected, allowed it to remain stable against the yen remained stable after the three-day rally.
He dollar index The U.S. dollar —which measures the greenback’s performance against a basket of six major currencies— rose slightly at the start of trading, hitting a high of 103.299 units, close to its highest value in a week, as U.S. employment data on Thursday spurred a reduction in bets on interest rate cuts. Federal Reserve (Fed) at the end of this year. Overall, it remained stable at around 103.2 points.
In contrast, the yen and the Swiss franc – which is also chosen as a safe haven for value – remained near one-week lows while the main stock markets rose and the yields of the US Treasury bonds fell.
The markets have endured a turbulent week, brought on in large part by surprisingly weak U.S. payrolls figures a week ago that sent stocks tumbling global actions, while demand for safe-haven assets like the yen and franc sent those currencies soaring to their highest level since the start of the year on Monday. “The prospect of a purely risk-on, pro-carry environment for the exchange rate for the second half of this year is much less interesting given our more conservative outlook for dollar/yen and euro/Swiss franc,” the currency strategist at Reuters told Reuters. UBS, Yvan Berthoux.
“We don’t expect a more significant decline. The failure has been quite clear in this environment,” he added.
On the other hand, the dollar The dollar fell 0.2% to 146.96 yen, on track for a gain of around 0.3% this week, which would be its first weekly increase in six weeks. Against the Swiss franc, it was down 0.3% at 0.8644 francs, but is still on track for a weekly gain of 0.8%.
Data on Thursday showed the number of Americans filing new claims for unemployment benefits fell more than expected last week, calming fears that the labor market was crumbling and reinforcing that a gradual weakening remains intact.
The odds of the Fed reduce the interest rates by 50 basis points at its next policy meeting on Sept. 17-18 fell to 55% from 69% the day before, and a 25 basis point cut is now seen as having a 46% chance, according to the tool. FedWatch of the CME Group.
End of yen short positions?
He yen had soared this month, hitting its strongest level since Jan. 2 on Monday at 141.675 percent. dollar, as the liquidation of short positions intensified, following a surprise rate hike by the Bank of Japan amid weak US economic indicators.
The figures of the Commodity Futures Trading Commission will give a clearer indication later on Friday on the extent of the yen buying that has taken place.
The euro was down slightly at $1.09175, but little changed compared to a week ago. On Monday, it rose to $1.1009 for the first time since January 2.
Sterling fell to $1.2743, after a 0.5% overnight rally lifted it off a more than one-month low. However, it remained on track to post a fourth straight week of declines.
The Australian dollar fell 0.3% to $0.6572, before hitting its highest level since July 24 earlier in the session, while the New Zealand dollar hit a three-week high of $0.6035 before stabilizing on the day at $0.6013.
Three negative days in Uruguay
In Uruguay, meanwhile, the dollar fell 0.27% compared to Wednesday, closing at 40.296 pesos, according to the official exchange rate. Central Bank of Uruguay (BCU), chaining its third consecutive day of decline and going through the week in negative territory, although it continues to operate within the 40 pesos range.
The US currency has accumulated a weekly decline of 0.40% compared to Friday, a monthly variation of 0.05% and an annual variation of 3.26%, since its interbank rate is 1.27 pesos above the one registered after the close of the last exchange day of last year.
Source: Ambito
