MercoPress, en Español

Montevideo, June 6th 2023 - 10:11 UTC



Uruguayan peso gets stronger against US dollar

Thursday, February 3rd 2022 - 09:54 UTC
Full article
The US dollar also fell in Brazil, but in Argentina it went up due to the “Máximo effect” The US dollar also fell in Brazil, but in Argentina it went up due to the “Máximo effect”

Uruguay's currency keeps growing stronger against the US dollar, it was reported Wednesday in Montevideo after it closed at a rate of UR $ 43 / US $ 1.

The new data means the currency foreign to the Mercosur country fell 2% in 2022 after a hike of nearly 6% at the end of last year. In December's last transaction it traded at UR $ 44.70, which represented a 1.9% fall compared to Wednesday's figures, when the Banco de la República Oriental del Uruguay rated it at UR $ 42.65 (buy) / UR $ 45.05 (sell).

According to Montevideo's daily El Observador, there is “a certain lack of liquidity of pesos” in the local market. In addition, there is also a certain demand for nominal bonds from abroad which are usually channeled in the foreign exchange market through two private banks.

Uruguay Central Bank's (BCU) Survey of Expectations in January foresaw the dollar would rreach UR $46.40 at the end of this year.

This weakening of the greenback in the Uruguayan exchange market occurs in a context where international markets and analysts are anticipating a global rise once the US Federal Reserve (Fed) begins to increase interest rates, starting in March. Between three and four increases are foreseen in the United States.

In Brazil, the US currency was also falling. It traded at R $ 5.27 / US $ 1 Wednesday while in December it was R $ 5.75 / US $ 1, after the Central Bank of Brazil (BCB) also raised its basic interest rate amid growing inflation.

Meanwhile, in Argentina, the “Máximo effect,” or the turmoil caused by the resignation of Deputy Máximo Kirchner to his position as majority leader at the Lower House has led the unofficial rate to rise from AR $ 214 to AR $ 216.50 per dollar Wednesday.

Categories: Economy, Uruguay.

Top Comments

Disclaimer & comment rules

Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!