The Dollar On a day when the Federal Reserve (BCR) intervened to stem the rise of the Greenback, it crossed the S / 4 mark again in the foreign exchange market this Wednesday, while the US currency strengthened globally following the comments of policymakers. The Federal Reserve (Fed) raised expectations of a rate hike in mid-2022.
At the end of the day, the dollar was trading at S / 4.0080, 0.03% higher than the S / 3.9980 at the end of trading on Tuesday, according to BCR data.
The dollar started the day low and touched S / 3.9950, but then resumed an erratic evolution. To reduce the volatility of the exchange rate, BCR began placing transaction transfers for S / 720 million in four auctions.
At the end of the session, the issuing company sold $ 70 million, at an average exchange rate of S / 4.0070 per dollar. As a result, PCR has amassed $ 1,633 million in cash sales in November and $ 10,988 million so far this year.
Operators said that the upward pressures on the exchange rate are responding to the demand for dollars by participants in the exchange market, given the uncertainty created by the political environment due to the ongoing conflicts between executives and Congress.
Following the resignation of Walter Ayala from the Ministry of Defense, questions were raised with the Administrator, focusing on Education Minister Carlos Gallardo, for irregularities in the application of the single national exam for the 2021 nomination contest. The force, Popular Action and Popular Renewal have said they support the intervention against the officer.
Members of parliament have also expressed concern over complaints against President General Secretary Bruno Pacceau, who allegedly pressured Sunni leader Luis Vera in favor of two companies with tax debts.
Maria del Carmen Alva, President of Congress today, said that “many benches have expressed their opinion in the sense that powers should not be given to the administration or given in a limited way.”
Globally, the dollar traded at a four-and-a-half-year high against the yen and a 1.12 against the euro, a day after St. Louis Federal Reserve Chairman James Bullard said the US Federal Reserve should “take more controls”. An approach to prepare it for its next meetings if inflation does not begin to ease. “
“Yesterday’s strong retail sales did exactly what it was supposed to do and pushed the dollar into the new bullish territory against many currencies.”Jeremy Thompson-Cook, chief economist at International Trade Payments expert Equals Moe, told Reuters.
Money markets are set to set a higher probability of raising the federal interest rate in June, followed by another in November. CME data suggest a 50% probability of a 25 basis point rate increase by July 2022.
The dollar index, which measures the currency against six rivals, rose 0.1% to 96.053 against the dollar on Wednesday, hitting 95.884 for the first time since July last year.
At the end of the day, the dollar is accumulating 9.73% gain against the sun in the exchange market so far in 2021, after ending at S / 3,169 last year.
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