The dollar weakens in the world: how it impacts Argentina

The US dollar weakens worldwide. The monetary issuance lights the alerts in the United States and, added to the short circuits of Donald Trump with the Federal Reserve (Fed) and the geopolitical tensions, make the green ticket minimal touch since 2022 compared to the main coins of the world. It is positive news for Argentina. He DXY index Compare the American currency in front of other coins baskets, such as the euro, the Yen, the Libra, the Canadian dollar, the Swedish crown and the Swiss Franco. This Thursday, 0.56% goes back and is located around 97.15, the lowest value in three years. “Since the year began until today, the DXY dollar depreciated 10%. We believe that the exception that the United States brought with respect to the dollar was over. Recall that the United States is not the only country that consumes dollars, everyone consumes dollars, and that allowed until this year to issue dollars, print them, and not generate devaluations, simply because in other parts of the world they also consumed and that compensated. But now, that exceptionality began to be put into question, because they were broadcasting strong thanks to the fiscal deficit, and 7% of debt debt levels were reached. This lit the alarms. I mean: If you emit, you will devalue, there is not much round to give it ”Said Ian Colombo, Gold Cocos Financial Advisor. If the trend is maintained in the next few days, the DXY dollar It will mark the most pronounced decline for the first semester of a year since the beginning of the era of free flotation currencies at the beginning of the 1970s, after the collapse of the fixed exchange rate system of Bretton Woods. As it contrades, The euro is now at its strongest level against the dollar since 2021with a contribution of US $ 1.17. The president of the Board of Governors of the Federal Reserve, Jerome Powellerin Hoolyy – AP “The dollar since Trump assumed not stop weakening, because basically what investors see is the instability of the United States. That is, This advance that is being had with the Fedwith criticism of its president, Jerome Powell. On the other hand, He wants to make a more expansive monetary and fiscal policy, which makes the debt more unsustainable. Today, investors question all that and the dollar weakens, ”explained Martín Polo, head of the Financial Allies Strategy. For the operator Leonardo Svirsky, this is added that the market is convulsed by the tensions in the Middle East and the comings and turns with the tariff policy that Trump wants to impose. Started so much, investors await the Fed decision regarding interest rates for the next month. “Above, Trump wants to get Jerome Powell at all costs. Market volatility obviously does not help at all. And that the economy does not at all good, it has a lot of impact on all indicators. The same with tariffs, a topic that still did not end and will have to see if it impacts inflation, ”he completed. Real exchange rate of Argentina. Source: Cohen Financial Allies for Colombo, that the dollar weakens at the global level is “very positive” For all emerging currencies, including the Argentine weight. As explained, this situation generates that It can be cheaper and that the local currencies of emerging countries are appreciated. “In principle, it allows us to improve the margin of competitiveness. With what the peso depreciates against the dollar, and what the dollar depreciates against the rest of the currencies, today you are more or less doing a devaluation around 3.5% nominal monthly. That is, the weight against the coin basket, which is called the multilateral nominal exchange rate, is being depreciated at 3.5% per month. So far this month, if you join what the dollar was devalued, it allows you to improve your real exchange rate. The real multilateral exchange rate, that is, against all coins, rose almost 10% so far this year. But against the dollar you only won 1.5%, fix how the world helped. This allows us to compensate a bit the exchange delay that had been dragging ”, He closed pole. Donald Trump announced a high fire between Israel and Iran: “War will be considered finished”