Title: Dollar Index Closes with Losses Amid Cooling Consumer Spending
Subtitle: Exchange Rates for Central American Currencies on July 1
The month of July begins with the closure of markets on Saturday, leaving investors eager to know how the dollar fared against various Central American currencies, including the Mexican peso, Honduran lempira, Guatemalan quetzal, Nicaraguan córdoba, and Costa Rican colon.
After a series of consecutive gains, the dollar index experienced losses as the US currency was hit by economic data indicating a slowdown in consumer spending. This raised concerns about potential interest rate increases by the Federal Reserve.
The Commerce Department’s report revealed that the Personal Consumption Expenditures (PCE) index, the preferred measure of the Fed, rose by 0.1% in May compared to a 0.4% increase in April. While an annual increase of 3.8% was recorded, it marked a deceleration from the previous month’s 4.3% rise.
Following these developments, the dollar index (DXY), which measures the dollar’s value against a basket of six major currencies, closed with a 0.41% decrease at 102.92 units according to Investing.com, a leading financial portal.
Exchange Rates on July 1:
– Mexico: 17.1251 Mexican pesos (MXN) (+0.01%)
– Costa Rica: 542.92 Costa Rican colon (CRC)
– Guatemala: 7.8461 quetzales (GTQ) (+0.02%)
– Honduras: 24.7200 lempiras (HNL)
– Nicaragua: 36.5750 córdobas (NIO) (+0.12%)
The purchase and sale rates for these currencies are as follows:
Purchase:
– Mexico: 16.6000 Mexican pesos (MXN) (Banamex)
– Costa Rica: 536 Costa Rican colon (CRC) (Bank of Costa Rica)
– Guatemala: 7.67 quetzales (GTQ) (Banco Azteca)
– Honduras: 24.59 lempiras (HNL) (Ficohsa)
– Nicaragua: 35.95 córdobas (NIO) (BAC)
Sale:
– Mexico: 17.5500 Mexican pesos (MXN) (Banamex)
– Costa Rica: 550.00 Costa Rican colon (CRC) (Bank of Costa Rica)
– Guatemala: 7.91 quetzales (GTQ) (Banco Azteca)
– Honduras: 24.71 lempiras (HNL) (Ficohsa)
– Nicaragua: 36.82 córdobas (NIO) (BAC)
Despite recent setbacks, the dollar may witness gains if the Federal Reserve proceeds with anticipated interest rate hikes. Fed Chairman Jerome Powell and other officials have indicated the likelihood of at least two rate increases this year to tackle rising inflation.
However, doubts have surfaced among traders following the release of the Personal Consumption Expenditures Index, which reflects the Fed’s preferred inflation indicator. If additional weak economic data emerges, the pause in rate hikes could extend.
As investors await further developments, the dollar’s future trajectory depends on how the Federal Reserve addresses the economic landscape and inflation concerns.