The dollar in Chile continues to show signs that the Central Bank’s intervention in the local greenback market is having an effect. The currency of the United States began the day lower, and the Chilean peso is also favored by the rise in the price of copper.
“So far it has been seen that the objective (of the intervention) has been achieved, but pay close attention to the economic data that we know in the United States in the coming days, in addition to the news regarding world economic growth,” says the chief. of trading studies at Capitaria, Ricardo Bustamante.
However, the initial rise is the lowest since the autonomous body announced the injection of US$25 billion into the dollar market through various foreign exchange instruments.
At the start of operations, the dollar loses $7.07 regarding yesterday’s close and listed at a value of $919.95. Thus, the greenback is heading for its third consecutive day down, where he accumulates a loss of $131.1.
According to data from Bloomberg, the dollar in Chile is at its lowest level in three weeks.
The Chilean peso is also favored by the rise in the price of copper. The three-month price of the reddish metal gains 1.93% to a value of US$3.35 a pound.
“For today we expect a bearish day in the dollar against the peso, which could break $920 and go in search of $900 due to the appreciation that copper has brought, and due to the uncertainty before the rate decision in the US$, BeFX analyst Camilo Celedón projects.
However, the greenback at the international level recovers again after three days down. The dollar index gains 0.24%.
Markets have cut expectations of a 100 basis point US interest rate hike next week and now see a 23% chance of such a hike after authorities poured cold water on that option. highlights Archyde.com.
“For the exchange rate we see a stable but downward price, thanks to the notable advance in the price of copper, the stable price of dollar index and the still notorious effect of the intervention of the Central Bank in our country, which practically sold half of its dollar reserves in order to control the value of the exchange rate”, says the senior market analyst at XTB Latam, Francisco Roman.
So far this day, the Chilean peso is the sixth most appreciated currency in the world against the dollar and the second among the group of currencies of emerging countries, according to Bloomberg.