2024-02-14 19:06:00
The exchange rate plunged below $960 this Wednesdaycorrecting part of the persistent advances of recent times, in a more optimistic investment climate following lower-than-expected British inflation data and more flexible comments from the United States Federal Reserve.
At the end of the session, The dollar fell $12.19 to $958.77 on Bloomberg screens, marking its biggest drop since November 20, 2023. On the external side, he dollar index It lost 0.25% and Comex copper fell 0.24%.
In the US debt market, The yield on the two-year Treasury bond – sensitive to expectations regarding the Fed – fell almost 10 basis points (bp)reversing a part of yesterday’s jump by the surprise to the rise of the CPI. Credit costs fell even further in the United Kingdom, following their consumer prices saw a sharp monthly contraction in January.
Global stock markets rise as market rates shake off part of the inflationary shock of the day before
Weight correction
The Chilean peso stood out by far as the most strengthened emerging currency of the day. And the local exchange rate has been especially pressured upwards by the rate differential with the US, reaching highs since October 2022 and “misaligning themselves with their peers,” he told DF Deputy Manager of Sales and Trading at Fynsa, Gustavo Gallardo. “Much of the foreign flow generated by this purchase of dollars tends to adjust more”held.
Hantec Markets senior market analyst Renato Campos noted along the same lines that ““There was an overreaction of the local market in recent weeks”emphasizing that “just as today the peso is the emerging currency that is strengthening the most, in recent weeks it was the one that weakened the most once morest the dollar, unlike peers such as the Mexican peso or the Brazilian real.”
Guillermo Araya, research manager at Renta4, emphasized that the US CPI changed rate expectations to a point where “The Central Bank of Chile does not have room to continue lowering the interest rate much”which would make “the expected rate differential with the US will not narrow as previously thought.”
The markets also picked up new statements from the US central bank today. “I am not in favor of waiting until annual inflation has already reached 2% to start cutting rates”said Chicago Fed President Austan Goolsbee. “Even if inflation comes a little higher for a few months (…) it would still be consistent with our path back to the target,” he said.
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