He global dollar maintained its strength with just a slight downward movement that did not move it too far from the three-month highs achieved during the previous day, driven by operators’ expectations regarding the next rate cut by the Federal Reserve (Fed)as well as for the possible election results in USA.
He dollar index —which measures the performance of the greenback in relation to a basket of six other internationally relevant currencies— stood at 104.20 units, not far from the overnight high of 104.57 points, a level last seen on July 30.
A series of strong economic data and some aggressive comments from administration officials Fed have moderated the bets to a monetary easing of the United States in the coming months, according to the tool FedWatch of CME Group. In that sense, expectations for a total of 50 basis points of rate cuts during the two remaining Fed meetings in 2024 are around 70%.
Traders are betting 95% on a quarter-point rate cut at the next meeting of the Federal Reserve in November and are not betting on a reduction greater than 50 basis points. This compares with a 60%-40% split in favor of a bigger cut a month ago.
He dollar has also benefited from a rise in market expectations of a victory next month for the Republican candidate and former president Donald Trump, which would probably generate inflationary policies such as tariffs.
For his part, the euro and the yen rose from recent lows on Thursday: the euro strengthened 0.2% to $1.080075, a day after hitting a near four-month low of $1.07612; and the Japanese currency reached 151.925 yen per dollar after hitting lows since the end of June of 153.19 yen.
The pound sterling strengthened 0.4% to just under $1.30, after falling to a more than two-month low of $1.29080 on Wednesday.
The increase in Uruguay is not enough to reverse the negative monthly result
In Uruguay, meanwhile, the dollar rose 0.20% compared to Tuesday, closing at 41.596 pesos in the interbank price of the Central Bank (BCU), chaining its second consecutive day of rise in the range of 41 pesos, but still moving in negative territory so far in October.
The US currency accumulates a monthly depreciation of 0.11% and an annual variation of 6.60%, since its price is 2.57 pesos above that registered after the closing of the last exchange day of last year .
Source: Ambito
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