The dollar in Chile started the day lower and moving away from its trend of last week, where it closed higher every day. The Chilean peso on Monday managed to avoid a bad day for the currencies of emerging countries and today said group faced better conditions.
At the close of operations, the dollar recorded a fall of $26.38 compared to Monday’s close and is trading at a value of $917.50. Given this, the United States currency scored two consecutive days down.
In addition, the Chilean currency, so far this day, was the one that appreciated the most against the dollar within the group of currencies of emerging countries and the third in the world, according to data from Bloomberg. Today only the Mauritian rupee (East Africa) and the Myanmar kyat (Southeast Asia) outperform their Chilean counterpart.
However, the dollar in Chile registered a day of high volatility after registering a maximum of $940.53 and a minimum of $914.09.
The Chilean peso gained strength supported by copper, which is on the rise. The country’s main export recorded a gain of 0.97% in its three-month value and was quoted at a value of US$3.69 per pound at the close of dollar operations in Chile. While in its daily price, the reddish metal gained 0.74% at a price of US$3.674 on the London Metal Exchange.
“We expect the exchange rate to continue to fall in search of $920-$918, this if the price of copper continues its recovery from the upward trend”, stated the analyst senior of markets of XTB Latam, Pablo Mundaca.
For his part, the chief analyst of Admiral Markets, Renato Campos, maintained that “in the short term, the uncertainty surrounding the next plebiscite on September 4 does not seem to matter; however, we do not rule out that this will once again be an important catalyst, with a view to the end of the week and during the week prior to said event”.
Copper prices rose on Tuesday, helped by low inventories, signs of improving demand in China and fears that high energy prices will force smelters to cut output, Archyde.com said.
In addition, the dollar at the international level ended with an upward trend after scoring its fourth day in positive territory yesterday and closing with a gain of 0.81%. This Tuesday the dollar index lost 0.49%.
The dollar and US Treasury bond yields fell after US private sector business activity contracted for the second straight month in August, hitting its lowest level in 18 months.
“The data indicates a significant contraction, showing that the economy has weakened rapidly, which opens the door to the idea that the Federal Reserve may not be as aggressive,” OANDA’s Edward Moya told Archyde.com.