The price of the dollar in Uruguay opened the last business week of September with a marked risein an adverse global day for emerging currencies but also for the euro and the pound.
In the operations of this Monday, the US currency advanced 0.76% in the average of transactions, to $ 41,176and put an end to a streak of 37 consecutive sessions where the interbank dollar had moved with timid movements in the range of $40 in the wholesale market. The last operation through Bevsa was agreed this Monday at $41.30, with a rise of 1.05% compared to Friday.
The last time the US currency had crossed the barrier of $41 in the wholesale price was on August 2 ($41,013).
This Monday US$ 22 million were traded in the interbank market and there was no intervention from the Central Bank of Uruguay (BCU). A meeting of the Monetary Policy Committee (Copom) is scheduled for next week, where a new interest rate hike of 50 basis points (0.5%) is expected to anchor inflationary expectations. The last adjustment was made in July, when it left the rate at 10.25%.
The BROU did not report the price to the public on its board this Monday because it had flaws in its operating system that prevented the opening of its branches and the operation of the e-BROU app. In private exchanges, the dollar was offered over a range of $39.80 for purchase and $42.30 for sale.
So far in September, the dollar has strengthened 0.5% against the Uruguayan peso but is still 7.8% below last year’s last trade. In the last moving year, the exchange rate fell 3.5%, according to Bevsa.
Strong rise in the dollar in Brazil
The price of the dollar in Brazil, a regional reference market for Uruguay, the US currency advanced 2.5% and was trading at 5.38 reais.
The dollar index – which compares the dollar with six other major currencies – was on track to close at a new high since April 2002, up 0.99% to 114.078 points.
“It is expected that the dollar will continue to increase its price due to the strong inflation that is experienced in the world and the measures that the Federal Reserve should take in this regard. Personal consumption data is expected for this week, with which the first speculations will begin how severe the Fed will be at its next meeting,” BeFX analyst Camilo Celedón wrote.
A meltdown in the British pound and the euro helped support the global dollar. The pound fell to a record low por below US$1.05, following a plan for the biggest tax cut in half a century pushed by the British government; while the euro fell to new lows since 2002 following the victory of a radical right-wing alliance in Sunday’s Italian general election.
“If there was ever a time to watch for something to break, this would be it. The strength of the US dollar has historically led to some type of financial or economic crisis.Michael Wilson, director of investment bank Morgan Stanley, warned in a note to clients.
