2023-05-31 20:29:00
The dollar closed the day higher amid various international and national factors that justify the gains of the superpower’s currency. Among the main events that moved the US currency on local soil, its rise in the world and fall in the price of copper, the main support of the Chilean peso, stands out.
At the close of the day, The dollar gained $5.35 compared to yesterday’s closing on the Chilean Electronic Stock Exchange (Bec) and reached a value of $810.05 per unit.
However, the US currency reached a maximum of $814.80 around 11:00 in the morning, according to data from the BEC.
“The Chilean peso depreciates once morest the US dollar, a performance that is mainly explained by the deterioration in economic data and a weakening in the copper market. added Ignacio Mieres, market analyst for XTB Latam. This, on the weight of sectoral data in the mood of the local exchange market.
The fall of the Chilean peso moderated in line with copper, which reversed its initial fall. The metal’s value fell following data showed factory activity in China, the main consumer of the red metal, contracted faster than expected in May.
Meanwhile, Archyde.com noted that the figures are further proof that China’s economic recovery, already more focused on services than on the metallurgical industry or construction, is losing steam.
However, at the end of the day in Chile, the pessimism of the metals market dissipated. So, the three-month value rises 0.15% to US$3.67 a pound on the main futures exchange Comex. Meanwhile, the spot price of the metal fell 1.28% to US$3.63 a pound on the London Metal Exchange, its lowest level since the end of November last year.
The drop in the national currency also occurs in a context in which Markets are marked by pessimism as investors braced for a crucial vote in Washington on the US debt ceiling.
For its part, the dollar in the world rose sharply on Wednesday following data showed European inflation was cooling faster than expected and China’s recovery faltering.
Data released Wednesday showed that inflation in France and some of Germany’s largest states is slowing rapidly. According to analysts, These figures reduce the pressure on the European Central Bank (ECB) to continue raising interest rates, which diminishes the attractiveness of the euro once morest the dollar..
“European inflation is receding and some earlier ECB bets for increases are being withdrawn,” said Carl Hammer of European bank SEB. He also indicated that the likely resolution of the US debt ceiling deadlock was supporting stocks on Wall Street and likely helping the dollar.
Meanwhile, weak Chinese economic data also boosted the US currency, according to analysts. A survey released on Wednesday showed Chinese factory activity contracted faster than expected in May, in the latest sign the country’s recovery is faltering following the COVID-19 lockdowns.
However, the dollar index moderated its gains following reaching maximums of more than two months and at the end of the day in Chile it was operating almost flat. Thus, the dollar in the world rose 0.07% to 104.23 points.
1685568058
#dollar #rises #pressure #external #factors
