The dollar began the week maintaining the upward trend that it has been carrying since the last days. The United States currency in Chile gains strength thanks to the advance of the currency at the international level and the fall in the price of copper.
At the close of operations, the dollar rises $22.17 compared to the close of Friday of last week and is trading at $992.
Given this, the currency scored its highest level since the intervention of the Banco Central to the dollar market in Chile. On the first day after the announcement of the issuing entity and after having registered its historical maximum the previous day, the currency of the superpower closed that day at $975.50.
However, the dollar moderated its advance after reaching an intraday high of $996.40, but closed far from the day’s low of $972.84.
In addition, the currency of the United States recorded its eighth consecutive day on the rise, if the two holidays on business days that the last National Holidays had are discounted, accumulating a gain of $93.61 since September 12.
The Chilean peso loses strength amid the recession fears pushing commodity prices to a slump amid a rising dollar, and rising fears over growth, prompting investors to shun risky assets, Bloomberg noted.
Along these lines, the price of copper for three months shows a drop of 1.88% and is trading at a value of US$3.29 per pound.
Another of the data that marks the day is that today the Central Bank sold US$25 million in the spot market at an average value of $991.50. This, within the framework of the intervention program of the autonomous body, reported Bloomberg. While, Central Bank Counselor Stephany Griffith-Jones said the Central Bank “is closely monitoring” dollar movements.
“We believe that as long as the dollar continues to strengthen and copper continues to fall, the exchange rate could continue to rise. Technically, the exchange rate has already exceeded the resistance of $955, so it could return to the all-time highs recorded in July, where the exchange rate closed above one thousand pesos”, estimated the senior market analyst at XTB Latam, Juan Ortiz. Godoy.
The Chilean peso faces a bad day in line with the performance of the currencies of emerging countries. According to the Bloomberg list, 22 of 23 currencies fall against the dollar and the rest, the Philippine peso, does not register daily variation.
However, the Chilean peso is on the day the third worst performing currency in the world and is only surpassed by the Franc of French Polynesia (Oceania) and the real of Brazil, according to data from Bloomberg.
On the other hand, the dollar is boosted as a refuge currency and the dollar index reaches a new maximum for two decades. The currency against a basket of the most important currencies in the world rises 0.74% and will register five consecutive days on the rise.