The dollar is experiencing a clear fall around the world just as optimism about advances in vaccines begins to evaporate and amid renewed fears about the effects of a second wave of infections, especially in the northern hemisphere, and data disappointing economics in the US.
The dollar index, which measures the currency against a basket of six liquid currencies, including the euro, reached a minimum of almost two weeks, although at this time it is rebounding and its fall reaches 0.15%.
“The US dollar began to fall during the early morning hours due to disappointing US retail sales data and growing concern about the effects of the reactivation of the pandemic,” said Jeffrey Halley, an analyst at OANDA, in a note sent to clients.
“This gives a lot of relevance to the meeting of the Federal Reserve in December, since more quantitative easing is expected, and that could add downward pressure to the dollar as we enter 2021,” the expert added, Reuters reported.
The same trend is followed in Chile. The dollar closed its day at a price of $ 757.90, a drop of $ 7.17 compared to the previous close and registered its lowest level since November 12 of this year.
The peso was favored by the new advance in the price of copper, which is at its highest in more than two years and firm above the barrier of US $ 3 per pound.
Given this scenario, the Chilean peso is the currency that has strengthened the most among emerging market currencies so far this day, according to Bloomberg.
“What moves the market today is uncertainty, due to the strong and constant increases in cases of coronavirus in the United States and Europe, although there is a glimmer of hope on the side of Moderna, a company that is developing a vaccine and is close to presenting results, of which since yesterday there has been talk that they could be better than those already presented by Pfizer, ”said Sebastián Espinosa, market analyst at XTB Latam.
The prices are also based on the improvement of the Chilean economy. Although GDP suffered a severe 9.1% contraction in the third quarterThis is less than the drop of more than 14% that it experienced in the April-June period.