The dollar in Chile closed in negative territory thanks to the inflation data from the United States, which was lower than expected and weakened the value of the greenback internationally. The superpower’s July Consumer Price Index (CPI) put on hold the idea that the US Federal Reserve would focus on curbing inflation with more aggressive rate hikes and no longer worry about an economic downturn.
At the close of trading, the dollar was down $14.78 from yesterday’s close and is trading at a value of $889.50. its lowest level since July 22. Before this, the United States currency recorded a losing streak of three consecutive days, where it accumulated a loss of $29.41.
“It could perfectly continue the fall in the coming days if there are more signs of being close to an inflationary ceiling in the United States,” says the head of trading studies at Capitaria, Ricardo Bustamante.
While the senior analyst at Libertex, Ángel Rubilar, states that “it is likely that the price will consolidate below $900, taking into account that the greatest pressure is international, at the moment, and that a weakened dollar encourages the acquisition of copper, which adds further downward momentum. On the other hand, we will have greater protagonism from the social political sector as the vote in September approaches.”
During the day’s operations, the dollar reached a maximum value of $905.33 and a minimum of $884.87, according to data from Bloomberg. In addition, today, the Chilean peso is the third most appreciated currency within the group of currencies of emerging countries. The local currency is outlisted by the Colombian peso and the South African rand.
Since the dollar recorded its maximum value in history and the intervention of the greenback market by the Central Bank began, the United States currency has recorded a fall of $150.5.
For its part, the dollar against a basket of the world’s most important currencies posted a sharp drop and headed for its third day in negative territory. The dollar index falls 1.08% compared to yesterday’s close.
“The prospect of US interest rates coming in lower than previously expected is helping (commodity) sentiment,” Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen, told Archyde.com. , who added that “copper received a boost after an increase in risk appetite and after a global fall in the dollar.”
In this line, the Chilean peso is boosted by the recovery of the price of copper due to the greater optimism of the market after the inflation data in the United States. The three-month value of the reddish metal is up 1.46% at US$3.64 a pound.