The US currency recorded its highest value since November 2022, while the common European currency came under pressure from unfavorable economic data.
He global dollar hit a new two-year high as momentum over potential donald trump and the pressure that these may generate in the flexibility of the monetary policy of the United States Federal Reserve (Fed) still stands; at the same time as the euro fell to a two-year low following unfavorable economic data.
He dollar index —which measures the performance of the greenback in relation to a basket of six other internationally relevant currencies— rose 0.5% to 107.6 units, its highest level since November 2022, in the early hours of Friday. The internal data added to the problems of the European currencies, which further pushed the US currency, already in an upward trend due to expectations that President-elect Trump’s policies could revive inflation and limit the capacity of the Fed to cut rates.
In that sense, Trump launched the idea of appointing Kevin Warsh as Secretary of the Treasury, with the understanding that he could later be president of the Federal Reserve, The Wall Street Journal reported Thursday, citing people familiar with the matter.
On the other hand, the euro fell to a two-year low and pound sterling also plummeted after data on Friday showed significant declines in commercial activity in both markets. Thus, the common currency of the European bloc fell more than 1% at one point to its lowest level since November 2022, and finally fell 0.6% on the day to $ 1.0413 after the data, which showed that the service industry The bloc’s dominant economy had contracted and manufacturing had sunk deeper into recession.
Markets also increased their expectations of rate cuts by the European Central Bank (ECB)and see a more than 50% chance of a larger-than-usual 50 basis point reduction in borrowing costs in December. “Today’s numbers were weak enough to shift risks even further to the downside,” he told Reuters. Frederik Ducrozet, head of macroeconomic research at Pictet Wealth Management.
“The monetary policy reaction should be simple: the ECB needs to ease faster to a neutral stance as a first step,” he added: “Then, of course, much will depend on US policies and tariffs, but under the assumption of a modest additional shock to trade and confidence, we believe the ECB will need to cut rates below 2% in 2025.”
The Japanese yen was trading at 154.4 per dollar, unchanged on the day, while bitcoin hit an all-time high just below $100,000.
The dollar recovered its positive behavior in Uruguay
In Uruguay, meanwhile, the dollar rose 0.24% compared to Wednesday and closed at 42,609 pesos in the interbank price of the Central Bank (BCU), thus ending its third consecutive day of decline within the range of 42 pesos.
The greenback now accumulates a monthly appreciation of 2.30% in November and an annual appreciation of 9.19%, since its price is 3.59 pesos above that registered after the close of the last exchange day of the last year.
Source: Ambito
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