The dollar closed the day with a sharp drop, leaving aside the upward trend that led it to mark a new all-time high every day of last week. Thus, the Chilean peso managed to strengthen after the announcement of the sale of up to US $5 billion by the Government to contain the fall of the Chilean peso made last Friday.
However, the strength of the dollar at the international level and the drop in copper deflated the strength of the Chilean peso. And it is that the currency of the United States started the day lower and continued to deepen the fall until it reached below the barrier of $900. However, after the close of the day, the dollar moderated its decline, falling $5.41 and trading at a value of $912.91.
The dollar in Chile also registered its biggest drop since June 15 of this year, on that occasion the US currency fell $11.72.
So far this month, the US currency accumulates a profit of $88.65 and in the year it rises $60.41.
Yesterday the dollar was not listed in Chile because it was a holiday and the market had not been able to react to the announcement by the Ministry of Finance, since the portfolio made the announcement on Friday afternoon, with the daily price of the US currency closed.
For his part, the Banco Central recently announced that it signed a liquidity agreement with the Bank for International Settlements, which allows the autonomous body to obtain liquidity in dollars.
“In good time, the Ministry of Finance has intervened in the local exchange rate, however, we must not forget that the Central Bank of Chile has made it clear last week that the advance of the crossing seems to be justified and not to move away from the fundamentals, reason for which they have not made changes in their structure in the short term”, commented the chief analyst of Admiral Markets, Renato Campos,
In a report sent this Tuesday, Banchile Inversiones stated that “this month (June), a large part of the pressures on the exchange rate are explained by the FED rate hike cycle and the lower price of copper, amid of high uncertainty.
Along these lines, he indicated that “the exchange rate accumulates an increase of 9.3% so far this month and is around 23% above the levels registered a year ago. Likewise, compared to its lowest level in 2021 ($694.8 in May), the accumulated increase is 30%”, although he pointed out that “The Real Exchange Rate continues at historically high levels, but not outside its fundamentals. For these reasons we rule out an intervention by the Central Bank in the current situation”.
With the close of this Tuesday, the Chilean peso managed to strengthen after six days of declines against its US pair and on a day in which the dollar rises against the currencies of emerging and developed markets, according to Bloomberg.
Along these lines, the dollar index, which measures the US currency against a basket of the most important currencies, recorded an increase of 0.53% after two days of decline.
For its part, the three-month copper price reversed its initial gains of about 1.5% and is now trading lower. The reddish metal loses about 0.19% of its future value and is trading at a price of US$3.76 a pound.
Given this scenario, the Chilean peso went from being the third currency that has strengthened the most against the dollar so far this day to the fifth, according to data from Bloomberg. Meanwhile, it is the third currency in the world that depreciates the most in the month and a few days before the end of June.