The dollar The week opened with another drop in the local foreign exchange market, in line with the trend observed for several weeks in Uruguay and other countries in the region. That way, the price dropped from $43 in the wholesale market.
The currency fell 0.38% and remained in the interbank average at $42,859, according to data from the Electronic Stock Exchange (Bevsa). This is the lowest value since the beginning of October 2021. The last operation of the day was agreed at $42.83, with a decrease of 0.4% compared to Friday’s close.
During the day there were operations for a total of US$ 19 million and there was no intervention from the Central Bank (BCU), which until now has remained outside the spot market.
This Sunday the Minister of Economy and Finance, Azucena Arbelecheaffirmed that “the evolution of the dollar is the one that corresponds to the amount of supply of dollars that there is in the market and the amount of demand”, he told El País.
“There we have had some dynamism both on the supply side, on the inflow of dollars, as well as some relevant players that may be buying less at this time. In that sense, the president of the BCU was clear about what the expectation of the exchange rate was from now to the end of the year and the tone of intervention is the same as always: to avoid excessive volatility at some point. The trend, the final price of the dollar, will be determined by supply and demand, that has always been supported by (the president of the BCU Diego) Labat very clearly”, he expressed.
On the BROU board, the currency was offered at $41.60 for purchase and $44 for sale this Monday.
On the other hand, at the regional level in Brazil the currency fell 0.75% and was trading at 5.09 reais per unit, according to data from Bloomberg. Also in Chile, the exchange rate ended Monday’s session falling almost 3 pesos compared to Friday’s close, standing at 798.7 units.
Globally, the Dollar Index, which measures the value of the US dollar against a basket of foreign currencies, fell just 0.06% to 95.96 units.
How the conflict between Russia and Ukraine can influence
Global financial assets are being hit by fears of a Russian attack on Ukraine and a war breaking out. Although the government of Vladimir Putin announced the withdrawal of troops near the neighboring country, the United States government affirms that it does not see a withdrawal and that the Russian attack is imminent.
Given this context, the question arises as to what would happen to the value of the US dollar in the event that these tensions end in a military conflict. Above all, considering that the United States would have a direct participation in the eventual confrontation.
