Local uncertainty keeps the dollar on the rise while it weakens globally

He dollar in Uruguay continues its bullish rally that took it close to 42 pesos on Friday, a price that the local market has not seen since mid-2022.

The US currency, which opens the week at 41.677 pesos, for the interbank market of BCUaccumulates a monthly rise of 3.33% against the weakening shown by the dollar at global level as a result of the rate cut policies that the United States Federal Reserve (Fed) started last week.

In the past week alone, the dollar reached an appreciation of 2.23%. While the dollar’s recovery so far this year reaches 6.80%.

He PIT-CNT plebiscite to reform the system of social security and its eventual approval next month represents “a reasonable uncertainty” for investors, as analyzed days ago in dialogue with Scope CPA Ferrere’s Economic Analysis Manager, Nicholas Cichevsky.

The lack of certainty about the rejection of the ballot appears to be a factor that puts pressure on the exchange rate and also generates a greater number of amounts traded, due to the risk aversion of large investors.

The global dollar this Monday, September 23

At a global level, the dollar is losing ground. The Japanese Yen strengthened 0.2% to 143.61 per dollar as volatility in the currency pair, which has increased as traders debate how far the dovish Fed will raise rates, Bank of Japan (BoJ) and how deeply the Fed will cut them, remained elevated, Reuters reported.

In Europehowever, the euro fell 0.5% against the dollar to $1.107 as business activity readings painted a gloomy picture for the U.S. economy. Eurozone and fueled bets on further interest rate cuts by the European Central Bank (ECB) this year.

On the other hand, the Chinese Yuan The dollar fell after the central bank cut its 14-day reverse repo rate, raising hopes for more easing and stimulus to revive the faltering economy despite disappointing expectations for further lending rate cuts last week.