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The dollar fell below $920 this Wednesday due to the inflationary relief that the US CPI for May brought to global markets, something that did not change largely with the Federal Reserve announcements made known during the afternoon.
The currency fell $6.17 to $917.22 at the closehaving hit a floor of $909 in early trading, according to Bloomberg. He dollar index fell 0.48% to 104.73 points and Comex copper rose 0.5% to US$ 4.52 per poundboth moderating their trends seen during the day.
Treasury yields continued to decline, although they also regulated. Although with a little less confidence, the operations of swaps They continue to discount a greater probability that the Fed will lower the rate in September.
According to Head of Investment Strategy at Principal, Jorge Herrera, “andthe exchange rate eased somewhat as morning inflation numbers increase likelihood of rate cuts this year”.
And it is that The Fed’s projections mitigated dollar sales, since they foresee only one cut for this year. Herrera highlighted that in addition “the long-term rate rises from 2.6% to 2.8%, in line with a scenario in which the neutral rate could perhaps be somewhat above the 2.5% that was considered some time ago.” .
More categorical were the signals from this morning’s inflation report, where All the main indicators were one tenth below the general estimates. The underlying series – without food and energy, the most volatile components – moderated at an annual rate of 3.4%, the lowest since April 2021.
