The dollar continued its upward path this Friday, one day following the Fed Chairman Jerome Powellindicated that there might be more aggressive rate hikes in the US at the May meeting.
The US currency closed at $837.10, up $10.72, reaching its highest value since January 4 this year. During the week, the currency rose $21.60, and the Chilean peso was the fourth currency that weakened the most during the day.
“This following Jerome Powell’s statements yesterday, in addition to other members of the FED, with a market that already discounts the chances of a 50 basis point rise in May with almost 98% and eliminates the possibility of 25 points, giving it little more than a 2% probability of a 75-point increase,” said Sebastián Espinoza of XTB Latam.
Guillermo Araya of Renta 4, for his part, indicated that “the rise in the dollar is not only in Chile, but is something that is taking place at a global level and is due to the fact that yesterday Jerome Powell hinted that the monetary policy rate would rise in a range between 0.50% and even up to 0.75% at the next FED meeting to be held on May 4”.
On the other hand, what is happening in the local economic scenario is also on the table.
“The local uncertainty in the economic and political aspect has been a key factor for the weakening of the peso, giving greater bullish arguments to the dollar,” said Ricardo Bustamante of Capitaria.
