The dollar strengthened its tendency to rebound in the local square, advancing for the fourth consecutive wheel and to accumulate in that period an improvement of the average 1.9%.
The ticket price, which had hit the floor of $ 17 at the end of last week in the wholesale business segment (touched $ 16,975), closed yesterday at an average of $ 17.27 after adding another 8 cents, which stretched its recovery since then to 29.5 cents. Following that route, the ticket for sale to the public, which had closed at $ 17.27 the previous week, was averaging $ 17.56 yesterday, after rising 14 cents on the day.
The bearish movement of the peso imitated the majority of the region’s currencies, which depreciated by 0.3% (Brazilian real) to 0.9% (Colombian peso), compared to a dollar that is something more in tune after the US Federal Reserve announced the day before yesterday that it will begin a very gradual reversal of the highly expansionary monetary policy is applied between 2008 and 2014 to help that economy to leave behind the denominated crisis of the mortgages and its recessive legacy.
The agency said it will start reducing its Treasury bill and mortgage-backed debt by $ 10 billion a month and plans to increase that amount quarterly to a maximum of $ 50 billion per month. The decision to cut the supply of dollars, judging by the rearrangements it triggered, seems to have weighed on expectations rather than moving on to a new rate hike by the end of the year.
For operators, the recovery of the ticket here may have helped the downward trend that began to show the rates that yield the letters of the Central Bank after the auction on Tuesday.
They refer to the declines almost homogenously recorded across the yield curve, which led to the longest Lebac (due in June 2018) to be compressed from 27.35% (Tuesday) to 26.90 and 26, 85% between the day before yesterday and yesterday. In turn, the shorter Lebac, which paid 26.5% three days ago, now yields 26% a year.
“This may have been caused by higher bets on the so-called carry trade, being interpreted as the prelude to an upcoming rate cut could have convinced some investors to begin rebalancing currencies,” noted a bank’s table chief.
“For the time being, what we can see is a resurgence of demand from banks and companies,” Fernando Izzo, of ABC Mercado de Cambios, was judged more cautious in the 27% increase in the volume traded (US $ 601.9 million).