He global dollar fell into the midst of suspicions of a interest rate cut by the United States Federal Reserve (Fed); while in Uruguay The greenback deviated from the global trend and rose again for the second consecutive day, reaching the $40 range.
He dollar index, which remained unchanged at 101.21, fell to 100.92 overnight for the first time this year. The rate cut in USA would give central banks around the world room to manoeuvre. On Thursday, the Bank of Korea opened the door to a cut in October, while Bank Indonesia plans to cut in the fourth quarter.
Still, rate and currency markets see the easing cycle in the US as having more runway than in other countries. Interest rate futures markets have already priced in a 25 basis point cut by the Fed next month, with a 1/3 chance of a 50 basis point cut. They project 222 basis points of easing in the US by the end of 2025, versus 163 basis points for Europe.
European currencies
For its part, the euro, which has posted strong gains this month, fell 0.1% to $1.1128. The single currency fell after weaker-than-expected PMI data from the central bank Germany suggest that its economy – which unexpectedly contracted by 0.1% in the second quarter – has failed to gain momentum heading into the second half of the year.
Meanwhile, in Great Britainthe pound rose to a fresh 13-month high against the dollar and also strengthened against the euro after British business activity data showed steady growth momentum heading into the second half of 2024. The pound rose 0.3% to trade at $1.3129, its highest level since July 2023.
The yields of the Treasury Bonds Ten-year yields remained virtually stable at 3.80%, while two-year yields remained at 3.93%. Investors said the dollar was facing a bearish trend.
“The unequivocal sign of the minutes (of the Federal Reserve) has been the catalyst for the latest fall of the dollar “US dollar,” said National Australia Bank’s head of currency strategy Ray Attrill. “A break above $1.30 on cable is likely to look sustainable,” he added, using a nickname for the pound/dollar pair.
The dollar in Uruguay strengthens
He dollar rose 0.19% this Wednesday compared to Tuesday, closing at 40.338 pesos in the interbank quote. Central Bank of Uruguay (BCU), thus recording its second consecutive day of gains and returning to the middle zone of the 40 pesos range.
The US currency has accumulated a monthly increase of 0.16% and an annual variation of 3.37%, due to the fact that its price is 1.32 pesos above the one registered after the closing of the last exchange day of last year.
On the reference board of the Republic Bank (BROU), he dollar The retail bill was offered at 39.15 pesos for purchase and 41.55 pesos for sale. For its part, the preferential value of the eBROU Dollar It was at 39.65 pesos for purchase and 41.05 pesos for sale.
Source: Ambito
