The dollar recorded another powerful drop once morest the Chilean peso thanks to the strong increase in the price of copper, expectations regarding the response it will adopt the central bank for the control of inflation and despite the US CPI data.
The US currency was trading at $806.40 seller, which represents its lowest level since last February 2 and a drop of $7.02 in relation to the previous day, when it collapsed $14.8. In two days, the dollar accumulates a drop of $21.88 and, according to Bloomberg records, the Chilean peso is the fourth most appreciated currency in the world in 48 hours.
However, the currency managed to break through the $800 barrier, hitting an intraday low of $797.24 at around 1:39 PM.
Alejandro Rodríguez, wealth manager of Renta4, warned that the exchange rate is approaching 2022 lows following the strong onslaught of copper that rose more than 3% on the London Metal Exchange, in addition to the probability of a new rise in the MPR between 100 and 150 bp, following the strong CPI data released on Tuesday.
In the local market there is much expectation regarding the measures that the issuer might adopt in the context of the strong increase in consumer prices. In this context, experts expect a rise in at least 125 basis points in the interest rate at the next meeting in March and others believe it is necessary for the issuer’s Board to advance that appointment.
“Yesterday we saw a drop of almost $15 in the exchange rate, which is mainly due to future projections of rate hikes in the country. While we see greater inflationary pressures in the national territory, the projections might be higher and higher, which might cause the Chilean currency to continue appreciating”, said Juan Ortiz Godoy, market strategist at XTB Latam.
The operations have as background the inflation in the USA that reached new annual highs since 1982. The CPI for January experienced a rise of 0.6% that exceeded the projections of the experts and that suppose greater pressure for the Federal Reserve to start with the cycle of raising the interest rate.
The data initially pushed the dollar indexwhich measures the currency once morest a basket of six liquid currencies, including the euro, but then took an unexpected downward turn that gave more reason for the local decline in the exchange rate.
“From the United States, we learned of inflation data that exceeded expectations, generating an important initial advance in the dollar worldwide, but, surprisingly, it later fell sharply despite signs from a Federal Reserve with more reasons to raise the rate. of interest in March,” said Ricardo Bustamante, head of trading studies at Capitaria.
Added to this is copper, which recorded its best session since mid-October last, jumping a 3.44% to its highest level in four months.
The Central Bank, for its part, today published the Expectations Survey corresponding to February in which experts estimate that the dollar will be at levels of $830 in two months.
