The dollar traded higher once more, but with gains of magnitudes similar to those that led the United States currency to trade above $1,000 weeks ago, and before the Central Bank intervened in said market. The Chilean peso loses strength in the face of a green ticket that rises internationally and despite the fact that the price of copper is gaining ground.
At the close of the day, The dollar rose $14.60 from yesterday’s close and is trading at a value of $944.60.
“The dollar continues to incorporate the information released yesterday regarding the zero seasonally adjusted growth of the Chilean economy during the second quarter of 2022 and the 8.5% current account deficit as a percentage of GDP,” says the Renta4 studies manager William Araya.
Given this, the currency of the superpower scored four consecutive days on the rise and the Chilean peso closed as the second currency that depreciates the most in the world during the period of the last five days. Also, posted its biggest weekly gain in history with a gain of $67.60 and exceeded the week of October 06, 2008, where the increase was 64.8%, according to Bloomberg records.
While, In relation to this Friday, the Chilean peso is the second currency that depreciates the most once morest the dollar in the world. The Ghanaian cedi is the currency that has a worse daily and weekly performance than its Chilean pair
However, the currency of the United States moderated its daily advance, since around 11:00 am today, it scored a value of $951.22.
The national currency also weakens ignoring the rise in future copper priceswhich at three months gains 0.94% with a price of US$3.67 per pound.
“The local uncertainty before the plebiscite to exit the new Constitution also generates a weakening of the Chilean peso and demand for the greenback internally, supporting an additional factor in the rebound of the dollar,” said the head of trading studies at Capitaria, Ricardo Bustamante.
For his part, the senior market analyst at XTB Latam, Juan Ortiz Godoy, highlighted that “some economists are already talking regarding a type of recession as a result of the slowdown that the Gross Domestic Product showed in the 2nd quarter, decreasing from the 7th. .4%% to 5.4%, which undoubtedly causes the local currency to depreciate once morest the dollar”.
The dollar at the international level continued to gain strength hit a five-week high on Friday and was headed for its biggest weekly rise since April 2020 as investors focused on the likelihood that the Federal Reserve would keep raising interest rates to fight inflation, Archyde.com noted.
“The dollar has also benefited from safe haven demand as weak Chinese data and the energy crisis in Europe raise fears of a further economic slowdown,” said Jane Foley, head of currency strategy at Rabobank in London.
St. Louis Fed President James Bullard, his San Francisco Fed colleague Mary Daly and Kansas City Fed President Esther George said it would be reasonable to keep raising rates to fight inflation.
Weak Chinese data this week and the energy crisis in Europe raise fears of a further economic slowdown, which has also weighed on European currencies and supported safe-haven flows, Foley added. “We expect another break below parity,” she said.
on that line, the dollar once morest a basket of the world’s most important currencies is on the rise and registers its third consecutive day of rise. The dollar index gains 0.56%.
