The dollar closed this Friday with its fifth consecutive fall, reaching $902.70. In this way, the local currency has experienced a retracement of $148.30 since reaching its all-time high of $1,051. However, it is the second-lowest performing currency in Latin America so far this year, so challenges remain.
The dollar closed the day this Friday at $902.70reaching its lowest level since last June 23 with five consecutive drops.
In this way, the Chilean peso becomes the currency with the second best performance against the North American currency, being surpassed only by the Brazilian real.
Since the dollar closed the day at $1,051, the highest value reported in Chile, the intervention of the Central Bank has allowed a retracement of $148.30 in the US currency.
According to the senior market analyst at XTB Latam, Juan Pablo Tiznado, the global weakness of the dollar was driven by “Inflation in the Euro zone, but also thanks to GDP, since this last figure comes out above expectations, alleviating fears of a recession and opening the way for the European Central Bank to make further rate hikes”.
Likewise, the price of copper made a significant jump, which is why it once again reaches out to the Chilean peso.
According to Financial Journal, the three-month contracts of the red metal advance 3.22% and reach US$3.58 a pound. Also, rose 1.15% on the London Metal Exchange, ending the day at US$3,538.
In this sense, from Cochilco they point out that the comments of the president of the US Federal Reserve (Fed) were interpreted “with a less aggressive tone than expected, which generated expectations of future interest rate increases at a slower pace than expected, favoring the price of the red metal.”
Price of the dollar: “July has been the most volatile month”
That the Chilean peso has ended July as best performing emerging currency, appreciating almost 2%is a sign of the impulse of the intervention of the Central Bank and external factors.
However, so far this year, the Chilean currency has fallen almost 5.36% and is the second lowest performing Latin American currency during this period.
In this way, it is only surpassed by the Argentine peso, which has fallen by 21.73%.
“Without a doubt, July has been the most volatile month in history for the local crossing”pointed out the chief analyst of Admiral Markets, Renato Campos, recalling the great rally of the dollar to $1,000.