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Dollar today: drops below $ 38 after US Federal Reserve announcements. – 01/31/2019



The dollar started its tenth day below the band of non-intervention. Within hours of the Monetary Policy Committee decide whether to increase and how much the authorized amount to buy foreign currency – and thus achieve an increase in demand, inject more pesos and that the dollar goes down with a drop of 48 cents, to $ 37, in the wholesale market. The floor of the no-intervention swap range is $ 37.61.

The Central Bank went out to buy it earlier. It purchased US $ 50 million at an average price of US $ 37.08, with a maximum of US $ 37.10. Since January 10, when shopping began, has US $ 560 million added to reserves.

Meanwhile, in the retail market, the dollar drops 50 cents to $ 37.90 at Banco Nación. On Wednesday, the currency closed at $ 38.59, according to the banks' average. These are values ​​that have not been seen since last December 3rd.

The dollar followed the same path as the other countries in the region, where all currencies – from Brazil to Mexico – were revalued.

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The fall of the dollar in Latin America is linked to the declaration of the Federal Reserve of the United States that decided maintain a cautious position in raising the rate. The Fed kept the base rate unchanged and, moreover, eliminated the reference to "more gradual increases" in its statement, which marked a flexible approach to reduce its portfolio of securities and implied that the next rate move could be even a cut .

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Optimism for emerging markets following the US central bank's decision also affects country risk, which drops 0.87 percent to 683 points. This means that there is a 6.83% difference between the Argentine and United States securities, considered the safest. The US Treasury's 10-year bond also fell to 2.67%.


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