He dollar fell on Friday against the yen and weakened against other currencies as traders took profits and investors analyzed economic data to gauge appetite for the United States Federal Reserve (Fed) for cutting interest rates. In Uruguay, Meanwhile, the currency operated stably and closed the week on the rise.
He dollar index —which measures the performance of the greenback against a basket of six internationally important currencies—, fell 0.48% to 102.54 on the last exchange 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 had losses of around 1%, while the euro advanced 0.36% to $1.1012 and the pound sterling rose 0.6% to $1.2931.
In Uruguay, the dollar operated stable
Meanwhile, in Uruguay, he dollar operated stable compared to Thursday and ended the week at 40.331 pesos, according to the exchange rate. Central Bank of Uruguay (BCU).
The US currency showed a marginal positive variation of 0.001% today and achieved a weekly increase of 0.31%, while maintaining its slight monthly improvement of 0.14% and doing the same in the annual accumulation, with an appreciation of 3.35%.
Source: Ambito
