He global dollar fell to its lowest level so far this year against the yen in the early hours of Friday at the same time as the gold reached an all-time high after the abrupt change of expectations in operators regarding the first interest rate cut by the Federal Reserve United States Fed.
He dollar index, The index, which measures the greenback’s performance against a basket of six other major currencies, was trading at a one-week low of 101 units after traders raised bets on a 50 basis point cut by the Fed. Fed at the meeting of the Federal Open Market Committee (FOMC) next week.
The last hours of Thursday were marked by comments about what to expect from the imminent first drop, with articles from major media outlets such as Financial Times and The Wall Street Journal speaking of a “close” decision. Likewise, the former president of the Fed of New York Bill Dudley —which maintains its influence in the economic world—he later said at a forum in Singapore that “there are strong arguments in favor of 50.”
This led to traders, who the day before saw no more than a 14% chance of the Federal Reserve cut more than 25 basis points – after somewhat rigid inflation data that generated doubts in the markets – they raised their bets on a half-point drop to 41%.
“Until now I had been firmly in the 25 basis point camp. This makes me think they could go to 50,” he told Reuters. Fiona Cincotta, of City Index: “It looks like a coin toss now, that’s what the market is showing, given the reactions we’re seeing in bonds, the yen, the dollar and gold.”
He dollar The Japanese yen fell 0.97% to 140.415 yen, its lowest level since December 28. It was last down 0.77% at 140.68 yen. Meanwhile, the gold The dollar posted its biggest weekly gain since mid-August, rising 2.8% to a record high of $2,570 an ounce, boosted by the weakness of the greenback. It was last up 0.4% at $2,568.
In Uruguay, the dollar continues to rise
In Uruguay, Meanwhile, the dollar broke a new high of almost two years after rising 0.11% compared to the previous day and closing at 41.071 pesos, according to the exchange rate. Central Bank of Uruguay (BCU), adding its fifth consecutive day of gains after the jump on Wednesday.
The US currency thus accumulates an increase of 1.82% so far this month and its appreciation reaches 5.25% so far this year, so that the dollar It is thus located at a value that it has not reached since October 25, 2022, almost 23 months ago.
Source: Ambito

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