Improving US economy pushed the dollar higher – Ultimahora.com

The dollar exchange rate locally closed yesterday at G. 5,690, while earlier this week nearly 5,580 G. sale, registering a rise of G. 110 relative to Monday.

the rise in the dollar against the Guarani is due, among other factors, the improvement in the US economy and the announcement of raising the interest rate the Federal Reserve (Fed) US.

the president of the Association of Exchange Houses, Rogelio Welko said the appreciation of the dollar globally and is due to the improvement in the US economy, announced by the president of the Fed, Janet Yellen.

“Today already affected the price of the local currency the news that the US economy is improving and that interest rates will rise in the coming months. That pushed up the dollar in almost everyone and also affected our country, “Welko said.

According to news portal eleconomista.es, Janet Yellen announced the possible decision to raise interest rates the coming months if the US economy recovers as expected and if the labor market continues to strengthen.

“the economy continues to improve (…) growth seems to be recovering,” said the president of the Federal reserve during a forum at Harvard University in Boston.

“If that continues and the labor market continues to improve, and I hope it happens (…) such decision (to a rate hike) in the coming months would be appropriate. “

the decision could be taken at the next meeting of the Monetary Policy Committee of the Fed (FOMC, its acronym in English) to be held on 14 and June 15 or 26 and July 27.

Since December, when the near-zero interest rates increased from 0.25 percent to 0.50 percent for the first time in more than nine years the Committee was postponed further increases when considering that the US economy was passing along a rough road.

the growth of the US gross domestic product (GDP) in the first quarter was a weak 0.8 percent annual but for the current quarter official and private estimates say it will increase to 2.5 and 3.0 percent.

CONSEQUENCES. Said Welko taken the decision to raise rates, what is expected is that investors begin to leave emerging and re-investing their capital in US banks with improved interest rates. “I do not know how far it can affect Paraguay, but Brazil can affect enough,” said the businessman the moneychanger sector.