Fed Chairman Jerome Powell brought calm after aggressive rate cuts and the US currency regained ground.
He global dollar strengthened on Friday against the yen, reaching its highest level in two weeks, after the Bank of Japan left interest rates unchanged and indicated it was in no rush to raise them again.
He dollar index —which measures the greenback’s performance against a basket of six other major currencies— rose slightly to 100.75, just above a one-year low. Meanwhile, the dollar rose to 144.50 yen, hitting its highest level since early September. euro, Instead, it weakened 0.01% to $1.115925.
At the same time, investors are assimilating the reassuring message from the president of the Fed, Jerome Powell, who said the huge reduction was a measure to safeguard a resilient economy, instead of one emergency response to the recent weakness of the labor market.
“It is indeed a decision of the Fed. “What Chairman Powell said was that they are watching the labor market carefully, and if it slows too much, they are prepared to act,” he told Reuters. Marija Veitmane, Head of Equity Research State Street Global Markets.
“Powell also said he doesn’t see the labor market as inflationary; that’s a positive message for the risk assets“, he added.
Record dollar in Uruguay
Meanwhile, in Uruguay, he dollar rose 0.19% on Friday and closed at 41.677 pesos, in the midst of a bullish rally. Thus, it broke a new record for the year and completed a week on the rise, with an appreciation of 2.23%.
To this must be added the monthly improvement, which reaches 3.33%, while the increase reaches 6.80% in the annual accumulation, cutting a good part of the exchange rate lag which was the subject of criticism from the agro-export sector.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
