He global dollar continues to strengthen as a refuge of value in the face of tension in Middle East and the expectations that United States Federal Reserve (Fed) will not rush to cut interest rates: in the face of the yen hit a more than six-week high, while the pound reached a two-week low against the North American currency after moderate comments from the governor of the Bank of England, Andrew Bailey. In Uruguay, Meanwhile, the exchange rate tilted in favor of the weight, cutting with two consecutive days on the rise.
He dollar index, which measures the performance of the greenback in relation to a basket of six other currencies of international relevance, rose 0.3% in the early hours of Thursday, reaching 101.91 units; after hitting a three-week high of 101,920.
The data about private payrolls Better-than-expected U.S. data on Wednesday raised expectations for a strong reading. non-farm payrolls on Friday, which could be critical for the rhythm of flexibility of the politics of Fed.
The crescents geopolitical risks this week and expectations of looser policy outside the United States have helped the dollar to recover from a low of more than a month on Friday, told Reuters Lee Hardman senior currency analyst MUFG. “The market would probably move more if payrolls were weaker than expected, because that would encourage (traders) to discount higher bets on a 50 basis point cut in November,” he added.
Traders currently have a 35.2% chance of another 50 basis point cut in US interest rates on November 7, according to the tool FedWatch of the CME Group, which is down from 49.3% a week ago, but still seems too high, according to Ray Attrill, director of foreign exchange strategy at National Australia Bank.
Meanwhile, the British pound hit a two-week low against the dollar after Bailey said in an interview that the central bank could become “a little more activist” on rate cuts if there was more good news about the inflation; in line with the moderation that has been shown in recent weeks. On the comments, the British currency fell 1.2% to $1.31040 after bets on a more gradual pace of rate cuts by the Bank of England helped push it to a more than two-year high. last week and will surpass its G10 peers this year.
The pound was on track to suffer its biggest daily drop in two years against the euro, at 84.24 pence.
The yen also hit a more than six-week low against the dollar when Japan’s new prime minister said Wednesday, after a meeting with the central bank governor, that the country was not prepared for further rate hikes.
In Uruguay, the dollar ended a streak of two positive days
In Uruguay, meanwhile, the dollar fell 0.19% compared to Tuesday, closing at 41,804 pesos in the interbank price of the Central Bank (BCU), ending with two consecutive days on the rise and continuing with its operations within the range of 41 pesos.
The North American currency now accumulates an annual variation of 7.13%, since its price is 2.78 pesos above that registered after the closing of the last exchange day of last year.
Source: Ambito
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