2023-05-18 20:24:55
The price of the dollar closed higher this Thursday in line with the strengthening of the currency at a global level, given greater optimism among investors regarding the negotiations on the limit of the government debt in the United States, and pressured by the decline in the value of copper, the country’s main export.
The US currency rose by $6.71 to $796.66, after fluctuating between a session low of $788.20 and a session high of $800.45.
The president of the United States, Joe Biden, and the main Republican congressman, Kevin McCarthy, reinforced their intention to reach an agreement to raise the government’s debt ceiling, and thus prevent it from falling into default as of June 1 .
“These statements have allowed the market to react positively, boosting the price of the dollar internationally,” said Daniel Seydevitz, market strategist at XTB Latam.
Added to this were favorable data released in the world’s largest economy that increased expectations that the Federal Reserve will apply a new interest rate hike at its June meeting.
Thus, the dollar indexwhich measures the behavior of the currency against a basket of six liquid currencies, including the euro, advanced 0.65% to 103.69 points.
Meanwhile, the price of copper resumed its downward trend, partly due to the strengthening of the dollar, which makes the value of the metal more expensive for users of other currencies, and due to an increase in inventories.
Three-month futures were down 1.37% at $3.70 a pound on the London Metal Exchange. Meanwhile, the spot price of copper closed with a slight decrease of 0.06% to US$3.70653 a pound.
“Copper has given back some of yesterday’s strong gains, led by short covering, as the dollar continues to rise, with the dollar index trading at its highest since March,” said Ole Hansen, head of commodity strategy at Saxo Bank to Archyde.com.
Putting further pressure on prices, copper stocks at London Metal Exchange-registered warehouses rose to a six-month high of 90,300t, after totaling 3,900t.
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