“Instability” post Plebiscite in Chile and global covid weaken the dollar and investors | Economy

He dollar showed downward movements, reaching this Tuesday in the $770 during its opening, fully coupled to a weakening of the dollar index at the international level that falls by 0.07%.

The greenback has lost positions at the beginning of this day, reversing part of the last registered gains.

At the local level this is mainly due “to the instability generated by the Plebiscite and the ‘Approve’ option, which overwhelmed the ‘Rejection’ option ”, explained Francisco Román, market analyst at XTB Latam.

After the results, the expert added, the market “does not look favorably on the years to come for the country, with a negative sentiment regarding possible economic instability ”that would make investors think more than once about the option of investing in Chile.

In parallel, one week from presidential elections in the United States, the polls are giving the Democratic candidate Joe Biden a solid advantage over Donald Trump, although the advantage is smaller in certain key states, which were very important for the current president to be elected last time.

Román indicated that the dollar index, which follows the evolution of this currency with respect to a basket of six other major currencies, falls to 92,937 after registering gains on Monday, “while the news about the second wave of the covid-19 pandemic is getting worse “.

The number of covid-19 cases exceeds 43 million contagion worldwide, with several countries – including the United States, Russia and France, Italy and the United Kingdom – registering new records with tens of thousands of new infections daily, “Which frightens the market strongly due to the fear of possible confinements worldwide,” said the XTB Latam analyst.

He copper, for its part, is trading above the US $ 3 a pound, which has made the drop in the exchange rate not so drastic, he added.

Finally, Román pointed out that for today “the exchange rate should remain between $ 765 and $ 775, with a key support of $ 770. If it continues to show drops, it could go for $ 760 ″.

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