The price of dollar He retreated throughout the world today, because the risk of the loss of independence of the Federal Reserve of the United States (Fed) was added to uncertainty.
In Peru, the price of the dollar closed today at S/3,710, going back 170 points with respect to the closing of Wednesday that stood at S/3,7270.
Asvim Asencios, Trader of Currency for rent4 SAB, said that during the day the dollar was pressed down the offer of local corporations, taking the currency at a minimum price of S/3,698 and maximum s/3,710. In the interbank market, US $ 514 million was negotiated at an average price of S/3,705.
“There was Swaps Expiration Change for sale for S/700 million. The same ones that were renewed by the BCR placing at 3.6 and 12 months,” he added.
Meanwhile, in front of a foreign exchange basket, the dollar fell on Monday to 97,923 points, its lowest level since March 2022. It also touched a minimum of a decade against the Swiss Franco, while the euro exceeded $ 1.15, according to Reuters.
Trump intensified his criticisms today against the head of the Fed, Jerome Powell, through social networks, qualifying him as a “great loser” and demanding that he lower interest rates immediately.
This despite the fact that Fed has played an important role in the world economy, due to its role in economic stabilization and the regulation of monetary policy. Their decisions about interest rates and money supply can impact the economies of other countries, since many currencies and markets are linked to the dollar.
“With these costs going down as well, as I predict that they would do it, there can hardly be inflation, but there may be a slowdown of the economy, unless the Lord too late, a great loser, lowers interest rates, now,” Trump wrote in Truth social referring to Powell.
The Economic Advisor of the White House, Kevin Hassett, said Friday that the president and his team continued to evaluate whether they could dismiss Powell, a day after Trump affirmed that the dismissal of the president of the Fed “cannot come quickly enough”, demanding a fence of fees.
Independence at risk
The independence of the Central Bank is important because it allows to ensure price stability by allowing monetary decisions based on technical analysis instead of short -term political pressures, which in turn generates greater credibility and confidence in the economy. Independent central banks have historically demonstrated a great capacity to manage inflation.
“If the dual mandate of the Central Bank (Fed) – keep the stability of price and encourage full employment – is diluted with a new set of objectives defined by the White House, those in charge of monetary policy could be unable to harden drastically in the case of a sudden rebound of inflation,” said Karl Schamotta, head of the head of the market in Corpay, Toronto of research.
Vishnu Varrathan, head of macroeconomic research for Asia, excluding Japan, in Mizuho said that Powell does not report directly to Trump, so the president cannot dismiss him directly. It can only be removed through certain procedures, which in theory present a higher barrier.
However, he added that Trump can move the pieces to undermine the perception of independence of the Fed.
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