Dollar: why it has strengthened in the world and caused a widespread fall of the currencies of the region

Republicans and Democrats in the United States have reached an agreement to suspend the debt ceiling and increase government spending for the next two years, which must be approved by the House of Representatives by July 26th.

The news has had an impact on the dollar price globally, whose index It has reached a maximum of two weeks against a benchmark currency basket and has reached its highest level against the euro since early June.

The Mexican peso traded with a down 0.5% to 19.15 units per dollar while the Brazilian real lost 0.8% to 3.77 units by US currency.

In Argentina, the peso dropped 0.5% to 42.67 dollars, while the Chilean peso depreciated 0.6% to 693.06 dollars a dollar, penalized by the strength of the world dollar and a further decline the price of copper, the main export of the country.

Meanwhile, the Peruvian sun registered a slight decrease of 0.2%. And in Colombia, the peso depreciated by 0.3%.

In this context, The dollar index rose 0.31% to 97.47, the highest level since July 9th. The strength of the US dollar was also buoyed by the weakness of the euro, ahead of the announcement of new stimulus measures expected Thursday by the European Central Bank.

While foreign exchange markets fell from less than 40% to less than 40% on the ECB's deposit rate on Friday, the ECB's deposit rate is below 40%, badysts expect moderate future forecasts and probably more generous conditions for new loans. several years

The euro weakened against the dollar but held up well against the Swiss franc, at around 1.10 francs for one euro. There is an increasing expectation that the Swiss National Bank can intervene aggressively to weaken its currency.

The advance of the dollar was also supported by the general strength of the US debt. The yield on 10-year government bonds has been running at around 2.05%.

The pound was trading at $ 1.24 near the median region after the election of eurosceptic Boris Johnson as the UK's prime minister.