He dollar fell slightly in the early hours of Friday despite fears of a recession in USA were tempered by solid inflation data and increased expectations of an upcoming rate cut by the Fed. Federal Reserve (Fed). In Uruguay, Meanwhile, the currency regained ground.
He dollar index —which measures the performance of the greenback against a basket of six internationally important currencies—, had fallen 0.3% to 102.75 at the start of the last trading day of the week.
Data on Thursday showed the number of Americans filing new claims for unemployment benefits unemployment fell to its lowest level in a month last week, while U.S. retail sales rose in July to their highest level in a year and a half, frustrating expectations that the Fed could cut interest rates by 50 basis points next month, although bets remain strong that the first rate cut will occur in September.
“We are in the camp that thinks that the deceleration growth is there, that inflation is slowing down and that the Federal Reserve “We will start cutting rates, but it’s not going to be a panic situation, which was becoming a narrative a week or two ago,” he told Reuters. Salman Ahmed, Global Head of Macro and Strategic Asset Allocation at Fidelity International.
“We still think we’ll see two or three cutsmost likely two instead of three, unless the increase in the unemployment rate that we saw in the last payrolls report continues,” he added.
Operators are convinced that the Fed The Fed is expected to cut rates on Sept. 18, but had debated the size of the reduction after surprisingly weak U.S. payrolls data raised the odds of a larger 50-basis-point cut to 71% in early August. The odds of such a move have since fallen back to 32%, according to the survey. FedWatch of the CME Group.
In parallel, the yen climbed in front of the dollar on Friday but still appeared headed for its biggest weekly drop since June.
In Uruguay, the dollar regained positive performance
Meanwhile, in Uruguay, he dollar rose 0.15% on Thursday compared to its value on Wednesday and closed at 40.330 pesos, according to the exchange rate. Central Bank (BCU), regaining ground in a week with ups and downs and staying above 40 pesos.
The greenback operated in the local market in tune with what happened in the world, where the global dollar It was also appreciated in the context of a market that could continue to fall for a few more weeks.
In this way, the US currency has accumulated a slight improvement of 0.14% so far this month, while, in the annual accumulation, growth reaches 3.35% when taking the last value of 2023 as a reference.
Source: Ambito
