2023-06-23 20:06:00
The dollar posted a double-digit weekly rise following a day of Friday where general concern regarding growth increased, since the latest purchasing managers’ indices (PMI) reflected greater challenges for the economies of the United States, the euro zone and Japan.
According to Bloomberg data, the price of the dollar rose $1.65 to $806.65 -a high since June 12- at the end of local operations. The parity exhibits a net rise of $11.35 for the week as a wholewhere operations were paused midway for the holiday on Wednesday.
In global markets, he dollar index it grew 0.49% to 102.89 points and Comex copper fell 2.09% to US$ 3.82 a pound. The New York Stock Exchange closed with losses.
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Factories in retreat
Recent surveys of purchasing managers took the lead of the day. The US manufacturing PMI fell more than expected to 46.3 points – its lowest level of the year –, according to the June preliminary report prepared by S&P Global. The services PMI declined to 54.1 points, not far from estimates.
“Despite the advances of the dollar at the international level, the exchange rate in Chile is unable to maintain the increases that it signaled at the beginning of the session. The PMIs once once more indicate the delicate macroeconomic situation in the US, increasing the probability of reaching neutrality soon at the Federal Reserve rate,” Admirals chief analyst Renato Campos wrote.
Eurozone PMIs were all weaker than expected.The manufacturing index fell to its lowest level since May 2020 and the composite PMI was on the verge of falling into the contraction zone (below 50 points). On the Asian side, Japan’s manufacturing PMI lost 50 points.
There was also an economic data at the local level: the Producer Price Index (PPI) contracted 9.0% annually in the May readingbeing the lowest figure since December 2014.
Fixed rent
In this context, the bonds of the whole world received a wave of investments -the interest rate of the treasury at 10 years it fell 5.4 basis points (bp)- and the price of gold rose 0.28%in the massive search for coverage once morest the chances of recession.
“Recently, major central banks have continued to push interest rates up, acknowledging growing concerns regarding inflation. With this, concerns regarding global economic activity have also resurfaced, and new recessionary prospects for the world are likely to begin to appear. developed for the second semester”, said Bci Estudios through its weekly report.
The dollar week was marked by the expansive tone of the Central Bank of Chilewhich maintained the official rate at 11.25% (with two out of five directors voting for a 50 bp cut) and indicated that it is at the gates to start the process of monetary easing. Rate swap at one year it sank 40.0 bp in the last five days.
Thus, the forecast of a narrower rate differential between Chile and the US has led investors to prefer the dollar over the Chilean peso. Foreign agents raised their position once morest the national currency to US$ 3,462 million at the close of Tuesday, with which the bet in any case continues at its most moderate levels since April.
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