The Uruguayan peso remained static on Wednesday as the local foreign exchange market closed in observance of a national holiday commemorating José Gervasio Artigas, the country’s founding father. The U.S. dollar, which had risen 0.32% on Tuesday, retreated to around $40.097, according to the Bolsa Electrónica de Valores (Bevsa), marking the first increase in five consecutive days of declines, data from the Central Bank of Uruguay shows.
Weekly Dollar Decline in Uruguay
The U.S. dollar fell 0.63% for the week, measured from the last trading day of the previous week to the final session on Tuesday. This follows a 0.29% weekly decline the prior week, indicating a sustained downward trend despite Tuesday’s rebound. Over four trading days, the dollar closed lower each time except for Tuesday, Bevsa records confirm.
June and Year-to-Date Trends
Through June 2023, the dollar has declined 0.17% in Uruguay. However, the currency has risen 2.71% year-to-date, according to Central Bank data. On the public market, the Banco República’s exchange rates dropped 25 cents for purchases and 15 cents for sales over the week, with Thursday’s closing rates at $38.80 for purchases and $41.40 for sales.
Regional Comparisons: Brazil and Argentina
In Brazil, the U.S. dollar fell 0.33% on Wednesday, closing at 5.1442 reais. While the currency has risen 1.73% this month, it has declined 6.51% year-to-date, Brazil’s Central Bank reported. In Argentina, the official dollar rose 0.69% to 1,461 pesos on Tuesday, marking a 3.6% increase in June and a 0.11% annual rise, Argentina’s Central Bank noted.
Global Dollar Index and Fed Policy
Globally, the U.S. Dollar Index, which tracks the dollar against six major currencies, closed at 100.8 points on Tuesday, its highest level in 13 months. The index gained 1% for the week, the Federal Reserve reported. The Fed maintained its benchmark interest rate at 3.5%-3.75% on Wednesday, per Fed statements.
Market Liquidity and Risk Metrics
Bevsa recorded 361 transactions totaling $179.2 million during the week, with Monday seeing the highest activity at 150 trades worth $75.8 million—the largest volume since January 2023. The risk premium, measured by the UBI Index, stood at 53 basis points on Tuesday, down four points in June and 13 points year-to-date, Republica AFAP data shows. The interbank lending rate (call rate) averaged 5.75%, aligning with the Central Bank’s target.