The dollar closed despite market tensions and changes in central bank rates


The government began the exultant week for the outcome of the G20 Summit. Mauricio Macri gave several interviews highlighting the role that the country played in setting up one of the most important meetings of heads of state in the world. There were dozens of bilateral agreements, the organization went according to plan, there was a final document and it was even possible to approach Donald Trump and Xi Jingping. These circumstances led the US currency to fall below $ 37 on Monday. Five days later, the dollar parked above $ 38, a number that could have been higher, given the tensions between China and the United States and the low rates which the Central Bank has defined.

The external tensions that caused the daily instability in the dollar were due to mistrust generated between the United States and China following the meetings held by the leaders of those countries in the G20. There was a lot of noise in reference markets for the validity of the ensuing trade dispute, despite the "Buenos Aires Pact" signed at the forum. Despite this, the currency had a rise of 69 cents during the week, although this Friday fell from the previous day.

On the last day of the week the dollar closed 30 cents below Thursday and thus successfully raffled the daily attack of the foreign trade war. The currency opened at US $ 38.54 for sale according to the Central Bank (BCRA) average and closed at US $ 38.30 at age 15. At the National Bank, the day closed at $ 36.50 for the purchase and $ 38.30 for the purchase. sale HSBC had the highest price at $ 38.90.

The dollar was rising after the deep decline on the day after the G20. On Monday weight was appreciated in tune with the rest of the emerging currencies. The US currency fell US $ 1.20 on Banco Nación this day, to $ 37.40 from the sale. The fall was 3.23%, which returned the exchange rate at the time to values ​​close to the floor of the flotation band imposed by the BCRA.

The move began to occur at a time when the entity managed by Guido Sandleris eliminated the floor of 60% for interest rates. The decision had to do with falling inflation expectations in the coming months. The day before you drilled that percentage, a weight went up

When the Central Bank made the 60-percent Liquidity Letters (Leliq) interest rate floor effective, the dollar reacted at its light high 5 cents high price and the retailer with an increase of nearly 40 cents. The entity presented this Wednesday these instruments to 59.1%, the lowest since the end of August.

Many feared the worst, because by lowering the interest rate, the volume of investment could have gone to the dollar, which could have greatly increased its value. Meanwhile, on Thursday, another pressure factor was added: the arrest of a senior executive of Chinese technology giant Huawei in Canada once again put the United States and China in a "war" position. Despite this, the dollar draws a difficult week and closed this Friday on the negative side.


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