The dollar has accelerated its recent gains earlier this week and is now looking towards $1,000. This comes after closing with a slight decline last Friday at around $980. Additionally, the United States currency is moving higher in Chile, causing it to close eight weeks of the year with gains and thus at a 17-month high.
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At the end of the day, The dollar rose by $8.75 compared to last Friday’s close on the Chilean Electronic Stock Exchange (BEC) and reached a value of $988.55 per unit, its highest value since the end of September 2022 ($995).
However, according to Beck data, the currency reached a maximum of $991 per unit in the last operations of the day and then lost its upward trend.
Chile’s peso has lost strength amid weakening of copper. The rise in value was partly due to an increase in inventories in warehouses registered on the London Metal Exchange, one of the main supports of the national currency, as well as market expectations awaiting more signals on the future of interest rates in the United States.
“Copper futures have seen more downside after starting a correction last week after a big bounce due to improved monetary conditions announced by the People’s Bank of China,” said Ricardo Bustali, deputy manager at Estudios Capiteria.
Thus, The three-month price of copper on Comex, the main futures exchange, fell 1.68% to US$3.84 per pound., Meanwhile, spot copper fell 0.82% to US$3.79 per pound on the London Metal Exchange.
“The Chilean peso fell due to a new decline in the price of copper, the country’s main export,” Reuters commented on the local exchange rate and on a day when the region’s currencies followed mixed results for the week pending data from the United States. Have been. And this will be important to control monetary policy bias in the world.
for your partDollar The decline came at the start of a week full of macroeconomic data that could shed more light on the outlook for global interest rates, and in which US inflation will take center stage.
handle, The dollar index, which measures the currency’s performance against the world’s most important currencies, fell 0.11% to 103.82 points.
The core personal consumption prices index (PCE), the Federal Reserve’s preferred measure of inflation, will be released on Thursday and is expected to rise 0.4% monthly.
Ahead of Thursday’s data, and according to CME’s FedWatch tool, markets are currently evaluating the likelihood that the Federal Reserve will begin lowering rates in May to below 20%, compared with 90% a month ago.