The dollar closed the last day of the week and business day of July lower. The Chilean peso managed to gain strength once morest its US counterpart on a day in which the price of copper made a significant jump and the greenback weakened internationally.
At the close of operations, the dollar fell $9.55 compared to yesterday’s close and is trading at a value of $902.70, its lowest level since June 23, 2022.
In Chile, the currency of the United States scored five consecutive sessions down, falling $54.18 during that period, and posting its biggest weekly drop in history, according to Bloomberg records. Also, the Chilean peso is the second best performing currency once morest the greenback in the week. The local currency is second only to the Brazilian real.
In addition, at the end of the month, the greenback registered a fall of $17.60 during July, following last June the dollar gained $95.89. While, so far this year, the dollar adds $50.20.
Since the dollar closed the day with in highest value in Chile ($1,051) and started the Central Bank intervention in the local dollar marketthe US currency has lost $148.30.
“If this downward pressure continues, we might see the exchange rate break the $900 zone more forcefully with a projection towards $880 next week,” projects XTB Latam senior market analyst Juan Pablo Tiznado.
In relation to today, the Chilean peso is strengthened by a new advance in the price of copper. The reddish metal gained 1.15% and closed at US$3.538 a pound, its highest level since July 7, 2022. While for the week, copper rose 5.8%, the highest weekly rise since July 15, October 2021, but in the year it drops 19.5%.
For its part, and at the close of dollar market operations in Chile, theThe price of the reddish metal following months gains 3.30% and is trading at US$3.59 per pound.
The market has also been helped by the tight supply of the metal, used mainly in the energy and construction sectors, as inventories have fallen and mining companies have reduced their production plans, according to Archyde.com.
While, the dollar at the international level registers its third consecutive day down. The United States currency once morest a basket of the world’s most important currencies falls 0.45%.
“The dollar has weakened, boosting commodity prices. What has happened? This week the Fed has acknowledged slowing growth in the US, so its cycle of rate hikes is slowing down,” Liberum chief commodity strategist Tom Price told Archyde.com.
However, Price clarifies that “I don’t think that improves the prospects. If the US economy is really under pressure, that is inherently bearish for commodities. Meanwhile, in China – the world’s largest commodity consumer – growth is deteriorating further.
“We have to be attentive to the sale of dollars that the central bank might have scheduled for next week, data from China that we will know over the weekend, and the economic data that we can learn from the US. Probably these will be the factors that will be moving the exchange rate during the next week”, pointed out Capitaria’s senior analyst, José Tomás Riveros.
