Friday, September 29, 2023

Chile’s dollar fell after hitting year highs

The dollar started the week resting from the last few days where it rose and set a new high for the year. The currency of the United States has lost ground in the national soil following its fall in the world and in the face of the rise of copper, one of the main supports of the Chilean peso.

In the first part of the day, the dollar fell by $7.4 compared to the closing of Friday last week on the Chilean Electronic Stock Exchange and reached a value of $888.50 per unit, one of the lowest values ​​of the day. If it continues, the currency of the United States will fall after two consecutive days of increase, during which it gained $ 23.25.

However, in the first operations, the dollar moderated its decline and sometimes recorded profits by reaching a maximum of $896.

“The price of the dollar started the week with a slight loss, in the midst of a corrective movement in the key parameters for the exchange rate,” commented the head of Capitaria Studies, Ricardo Bustamante.

The Chilean peso has gained ground thanks to the recovery of copper after a low balance in recent days. Metal prices rose on Monday as the appreciation of the Chinese currency, the weakness of the dollar and good credit data from the world’s largest consumer, China, pushed purchases by traders using the algorithms to generate buy and sell signals.

A weak US currency makes dollar-denominated commodities cheaper for holders of other currencies, boosting demand and prices. This ratio is used by algorithmic traders known as high-frequency traders, Reuters explained.

Meanwhile, new bank lending in China beat expectations, nearly quadrupling in August from July as the central bank sought to support economic growth.

Thus, the three-month price of copper rose 2.17% to US$3.80 per pound on the main futures exchange, Comex. Meanwhile, the spot value of copper rose 1.31% to US$3.77 per pound on the London Metal Exchange.

For its part, the dollar fell against a basket of major world currencies after closing higher last week. Specifically, the dollar index fell 0.42% to 104.65 points.

The global dollar fell ahead of US inflation data due on Wednesday, with traders watching whether the world’s largest economy is really on track for a “soft landing,” and whether the Federal Reserve should continue to raise rates.

“The price of the dollar itself at a global level started the week with some setbacks, which also affected the local exchange rate, as shown by the Dollar Index, which gave ground after reaching the highest amount since March last Friday,” commented Bustamante to the Captain.

Nation World News Desk
Nation World News Desk
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