The euro, meanwhile, hit a seven-month high amid expectations among traders of an upcoming interest rate cut by the Fed.
He global dollar weakened in the early hours of Wednesday, awaiting the latest data from inflation of USA that would give enough space to the Federal Reserve (Fed) to make the first interest rate cut in September, especially after fears of a recession in the US economy. euro, Meanwhile, it reached a seven-month high against the greenback, while in Uruguay, The US currency remained strong.
The euro hit a seven-month high against the dollar on Wednesday as traders bet that U.S. consumer price data would not push the economy back. Fed of the inevitable path of the first cut in interest rates for next month. In that sense, the Consumer Price Index posted a slight rise of 0.2% in July, as expected, after a fall of 0.1% in June.
This led to the dollar index The dollar — which measures the greenback’s performance against a basket of six major currencies — fell slightly to around $102.300, while the euro rose as much as 0.3 percent to $1.1029, surpassing the high reached during last week’s market turmoil and trading at its strongest level since Jan. 2. The currency was last up 0.25 percent at $1.1023.
He dollar weakened on Tuesday after data showed that US producer prices rose less than expected in July, pointing to a moderation of inflationary pressures.
Traders had widely expected a rate cut in September ahead of the producer price data, and raised bets for a whopping 50 basis point cut after the release, to 56% from 53% the day before, according to the tool. FedWatch of CME Group.
In Uruguay, the dollar remains strong
In Uruguay, meanwhile, the dollar rose 0.27% compared to the previous day and closed at 40.395 pesos according to the exchange rate. Central Bank (BCU), marking its second round of gains and leaving behind a streak of four losses in a row, despite the international context.
The American currency The dollar has remained in the 40 pesos range for more than a month and, contrary to the global scenario, is in positive territory on a monthly basis, with an improvement of 0.30%. Thus, the appreciation in the annual accumulation reaches 3.52% compared to the end of 2023.
Source: Ambito
