Strong US data and moderation from other central banks such as the European one keep the currency near its two-month highs.
He global dollar was headed for its third consecutive weekly gain in the early hours of Friday, boosted by a European Central Bank (ECB) moderate and solid data USA that are dampening expectations about how quickly the economy can cut interest rates. Federal Reserve (Fed)particularly if donald trump wins the presidency.
He dollar index —which measures the performance of the greenback against a basket of six other internationally relevant currencies— was around 103.62 units after a slight decline that still kept it close to its two-month highs, after the data Thursday will show that the consumer spending Americans beat expectations last month, adding to the belief among investors that the US rates perhaps they don’t need to come down as quickly as many thought just a couple of weeks ago.
In this way, the dollar was heading for its third consecutive weekly gain, which has also been compounded by the growing prospect of Donald Trump winning the November election, as his proposed tariff and tax policies are seen as likely to keep US interest rates high.
For its part, the ECB cut interest rates euro zone by a quarter point on Thursday, in line with expectations, in a nod to deteriorating economic growth across the region. Given this, the euro, which is around its lowest level since early August, is heading for its biggest three-week drop against the dollar since 2022, around 3%, as traders are now pricing in back-to-back rate cuts in upcoming meetings. of the European central bank.
The euro was last up 0.16% on the day at $1.0848, having fallen for 14 of the last 16 sessions.
Meanwhile, four sources close to the matter told Reuters the ECB is likely to cut again in December unless economic data suggests otherwise.
From Asia, Likewise, markets have been disappointed by the lack of more details offered by the Chinese authorities on the plans for reactivate the economyand the yuan is heading for its biggest weekly drop in more than 13 months against the dollar.
The dollar traded against the opposite direction in Uruguay
In Uruguay, meanwhile, the dollar fell 0.59% compared to Wednesday and closed at 41,630 pesos, according to the price of the Central Bank (BCU), falling after two consecutive days on the rise, within the framework of a month with ups and downs.
In this way, the US currency shows a slightly negative behavior in September, with a drop of 0.02%, while so far this year the exchange rate accumulates an appreciation of 6.68%.
Source: Ambito
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