So far in March, the price of the dollar remains relatively stable and this week global financial markets faced a scenario of uncertainty due to the recent problems experienced by some banks in the United States, such as Silicon Valley Bank (SVB ), noted Matías Maciel, CFO and co-founder of Rextie.
Thus, the week began with the dollar trading at S/ 3.798, an advance of 0.42% compared to the close of the previous Friday. During the day, the dollar fell internationally due to expectations that the Federal Reserve (FED) will be less aggressive with its monetary policy to curb inflation.
“After the SVB shares fell more than 81%, a series of measures to stabilize the banking system were announced last weekend and they affirmed that depositors would have access to their deposits that same Monday”explained Asvim Asencios, Foreign Exchange trader at Renta4 SAB.
On Tuesday, the price of the dollar closed at S/ 3.787, falling 0.29%. Internationally, copper fell due to concerns about the impact of a banking crisis in the United States, the strengthening of the dollar globally and a slow recovery of the Chinese economy, Renta4 SAB pointed out.
That day the data of the US Consumer Price Index was published, which pushed the rise of the dollar.
With an advance of 0.53%, the exchange rate closed on Wednesday at S/ 3.807. That day, the dollar gained positions due to the risk perceived by investors given the concern of greater instability in the banking sector. “As copper trimmed its positions by 2.9%, the yield on the two-year US Treasury fell to its lowest level since September”reported from Renta4 SAB.
On Thursday, the exchange rate closed at S/ 3.788, falling 0.5%. The euro rose internationally after the European Central Bank (ECB) raises its reference rate by 50 basis points.
Finally, the exchange rate advanced 0.13% on Friday and closed at S/ 3.793. At the international level, the dollar fell after the government and banks in the United States placed life preservers to alleviate the tension in the financial system.
For Maciel, uncertainty causes the market to change its expectations and concern about the situation of the financial system in the United States generates greater risk aversion.
“The context motivates investors to prefer safer assets. If the problem escalates in the main financial institutions, it would generate greater volatility in the exchange market and could lead to an appreciation of the dollar.”he added.
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