The market opens expectantly in Uruguay for the results of this Sunday’s elections where the initiative of the union center did not prosper.
He dollar in Uruguay opens this morning to the expectation for the electoral results and, mainly, for the rejection of the plebiscite of the PIT-CNT that sought to modify the pension system, a measure that, according to several specialists, would have severely affected the State’s accounts.
The last day before the elections, the dollar perceived a decline and relative stability in recent weeks, after a period of volatility which took it above 42 pesos. The last quote of Central Bank of Uruguay (BCU) determined that the greenback fell 0.11% on Friday compared to the previous day, although it obtained a weekly improvement of 0.02%.
Meanwhile, the retail dollar of the Republic Bank (BROU) opened this Monday lower, offering 39.80 pesos for purchase and 42.20 for sale. For its part, the preferential value of eBROU dollar It was at 40.30 pesos for purchase and at 41.70 pesos for sale.
What could happen to the dollar?
According to a report by Gaston Bengochea to which he agreed Scope, After the inauguration of a new government, a period of uncertainty begins, which leads many investors to diversify their positions, moving from Uruguayan pesos to currencies such as the United States.
“It is reasonable to expect that the uncertainty generated by the elections and changes in government will impact the exchange rate, leading agents to take refuge in safer currencies. This would result in an increase in the demand for these currencies and, therefore, in a depreciation of the Uruguayan peso in front of them,” said the economist Adrian Moreira in the document.
The global dollar rises
On the other hand, the global dollar is heading for its biggest monthly rise in two and a half years against a basket of major currencies, driven by signs of strength in the US economy. The bets that donald trump will win the presidency have also raised US yields in anticipation of policies that could delay interest rate cuts.
He dollar index US rose 3.6% to 104.46 during October, its largest monthly increase since April 2022. Finally, it was down 0.15% at 104.22.
Most analysts say markets are increasingly pricing in a sweeping victory for the Republican Partywith Trump winning the presidency and his party controlling both houses of Congress.
Source: Ambito
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