The dollar in Chile remains unstoppable amid a new drop in the price of copper. In addition, the United States currency did not flinch at the words of the Banco Centralwho claimed to be monitoring the foreign exchange market and is prepared to intervene if necessary.
After the close of trading, the dollar was up $24.74 from yesterday’s close to $1,018.24. Thus, the US currency scored three consecutive days on the rise, during this time the dollar accumulated a rise of $44.36. In addition, the greenback closed its daily price, for the first time, above $1,000.
On the other hand, the dollar today reached an intraday high of $1,026.45 and a low of $996.80.
While the dollar in Chile has increased $273.74 in twelve months, it has risen $165.74 so far this year and totals $85.58 during these days of July.
The weakening of the Chilean peso is in line with the 3.31% drop in the price of copper on the London Metal Exchange. The red metal in three consecutive days accumulates a drop of 5.9% and a loss of 10.6% so far in July, recording its lowest level since the end of November 2020.
For its part, Chile’s main export product also shows a drop in its three-month price. Copper futures deepen their loss and fall 4.98% to a price of US$3.26 a pound.
“The rise in the dollar occurred despite the verbal intervention of the Central Bank of Chile yesterday, but where the abrupt drop in the price of copper ended up diluting any effect that the message might have had in other circumstances,” said the manager. of Renta4 studies, Guillermo Araya.
Other bad news for the Chilean peso came from Goldman Sachs, which cut its projection for the metal in the next three months to around US$6,700 a ton as a result of fears of termination and higher energy prices.
In addition, the dollar once morest a basket of the world’s most important currencies reversed its decline. The dollar index registers a rise of 0.10%, registers two consecutive days on the rise and is at the highest levels since 2002.
Along these lines, the senior market analyst at XTB Latam, Juan Ortiz Godoy, estimates that “in the short term the possibility of seeing a dollar close to $1,100 is not closed as long as there is no foreign exchange intervention.”
On the day, the Chilean peso is the currency that depreciates the most once morest the dollar in the world, according to data from Bloomberg. However, the currencies of Colombia, Brazil and Uruguay also appear in the top positions of the ranking of the worst daily performance.
“At the local level, economic instability and political uncertainty continue to generate a depreciation in the peso, supporting further rises in the US currency, which would seek new all-time highs in the session,” added the head of Capitaria’s trading studies, Ricardo Bustamante. .
The future of the dollar in Chile will also be marked by the inflation data in the United States, which will be known this Wednesday and will serve as an input to anticipate the rate movements of the Federal Reserve of that country.
For its part, the Central Bank will have its Monetary Policy Meeting, in which it will define the changes to the Monetary Policy Rate (TPM).
