The dollar opened the week with a slight rise in the local exchange market after 10 consecutive sessions in decline. This Monday, the greenback advanced 0.1% and stood at $43,091 in the interbank average, according to data published by the Electronic Stock Exchange (Bevsa). During the day there were operations for a total of US$ 11.7 million and there was no intervention from the Central Bank (BCU) in line with what has been observed in recent days where the monetary authority remained on the sidelines of the market.
In the previous week, the greenback fell 1.6%, while so far this year it fell 3.5% against the Uruguayan peso (-$1.7) and returned to the levels of October last year.
On the board of Banco República (BROU), the dollar was offered at $44.25 for sale and $42.05 for purchase.
The recent weakness of the dollar coincides with a strong appreciation of different commodities at a global level. “Essentially what is happening is coming from the international scene,” commented the economist Aldo Lema in interview with 100% Markets Rural radio last week.
For its part, in Brazil the dollar fell 0.53% this Monday and was trading at 5.22 reais per unit, according to data from Bloomberg.
In Argentina, the blue dollar is located this Monday at 212.5 pesos for the purchase and 215.5 pesos for sale. In this way, the parallel price stabilizes after the drop it recorded at the start of the day. The blue dollar thus maintains the gap with respect to the official exchange rate above 100%.
On the other hand, despite the uncertainty in global markets due to the possibility of a Russian attack on Ukraine, the dollar registered a slight rise in the Chilean foreign exchange market, pending rate expectations from the Federal Reserve and the Central Bank of Chile. .
“The day has been volatile due to doubts regarding a diplomatic search for the Ukraine crisis and due to the statements of Fed authorities, who advocate greater aggressiveness in the withdrawal of stimuli and rate hikes. On Wednesday we will know the minutes of the FOMC, which will give us more clues about the magnitude and aggressiveness with which the Fed will initiate rate hikes,” said Matías Godoy, director of financial education at Ruvix.
Added to the international tension, the stock markets saw how last week the US CPI took inflation to levels not seen in decades and with this today we see a start of negative numbers and with a view to the next Fed rate hikes.
In addition, “the dollar Index, which compares the dollar against the world’s major currencies, has shown greater momentum after James Bullard, president of the St. Louise Fed, said that the Federal Reserve needs to be more aggressive in its fight against inflationgiving a more aggressive view of what the next rate hikes will be in the world’s main economy,” says the head of trading studies at Capitaria, Ricardo Bustamante.
The dollar index advanced 0.6% last week and the momentum continues on Monday, with a rise of 0.25%. Producer and retail sales inflation data will be released in the coming days, where figures that exceed projections should continue to boost the US currency.
With Diario Financiero-RIPE