The dollar extended its downtrend, and started to break out of $800 which now, according to technicians, becomes the “so-called” resistance. The day was marked by little reference data, and a rise in the price of copper.
The US currency closed at $788.99, its lowest level since September 23 last year. It also represents a fall of $4.7 in relation to the previous day.
The dollar accumulates a strong decline from the historical highs which reached December 20, 2021, when the market reacted to the results of the presidential ballot that Gabriel Boric won. Only so far this year the currency has dropped $63.5.
“The greater aggressiveness that Chile is having against the US or the Euro Zone is raising the price of the Chilean peso, which is generating downward pressure on the dollar and the euro, even though the war in Ukraine has not ended and geopolitical tension is remain in force”, said Diego Mora of XTB Latam.
The listing took place in the middle of a relatively calm day for the world’s markets, which are closely following the meeting of the OTAN in Europe, in the context of the war in ukraine who is a month old. Also, copper closed up 1.07% at $4.72 a pound on the London Metal Exchange.
At the local level, experts pay special attention to inflation expectations and also the interest rate, one week before the monetary policy meeting of the central bank and the Monetary Policy Report (IPoM).
“This week we will not know important data that could generate significant changes in the exchange rate, but during the next week the official employment and inflation figures that the Fes monitors from the United States will be revealed, while in our country we will know the decision of Central Bank rates, the Monetary Policy Report and the latest data from Imacec, key figures for the local economy”, said Ricardo Bustamante from Capitaria.
The operators consulted by the Central Bank expect the dollar to average $795 in the next seven days and $800 in 28 days.