He dollar indexThe index, which measures the greenback against six major peers, edged lower to 101.41 and held near the 2024 low of 100.92 hit on Wednesday. The index is headed for its fifth straight week of losses.
He Japanese Yen rose 0.2% to 146.03 per dollar, after having firmed 0.7% to 145.29 earlier in the session, after the governor of the Bank of Japan (BoJ), Kazuo Uedareaffirmed its determination to raise rates if the inflation remained on course to sustainably achieve the 2% target.
“His comments suggest that market turbulence will not deter the BoJ from considering further rate hikes in the future, even if the next move is not imminent,” said Vasu Menon, managing director of investment strategy at OCBC“As long as the dollar’s move against the yen is orderly and gradual, this should not shake global markets as much as it did earlier this month,” he added.
The Bank of Japan’s rate hike triggered a massive sell-off of carry trade operations financed with yen, which, added to concerns about a recession in the United States Joinedtriggered a global sell-off in early August. However, most markets have since recovered.
He euro held virtually steady at $1.1117, not far from the 13-month high it hit on Wednesday, while the pound sterling rose 0.3% to $1.31295, a 13-month high. The currency was on the verge of touching levels last seen in April 2022.
This movement contributed to a survey that showed that the British consumer confidence remained at a nearly three-year high in August, adding to positive signs in the broader economy.
Powell is scheduled to speak at the Kansas City Federal Reserve’s annual conference in Jackson Hole at 11:00 Uruguayan time and traders will tune in to assess how much borrowing costs in the United States could fall in the short term.
Markets are now pricing in a 74% chance that the Fed cut rates by 25 basis points (bps) at its September meeting, the CME FedWatch tool showed.
They widely expect 100 basis point cuts over the next three meetings, though some analysts believe markets are being too hawkish and could be disappointed if Powell is cautious.
He dollar in Uruguay rose 0.02% on Thursday and closed at 40.348 pesos, according to the exchange rate. Central Bank of Uruguay (BCU), operating with a slight increase that allowed it to extend its streak to three consecutive days on the rise. Thus, it remains in positive territory so far this month, with an appreciation of 0.18%. If we analyze the annual accumulation, the increase compared to the close of 2023 is 3.40%.
Source: Ambito
