The exchange rate continues steadily downward, while copper – faced with risks linked to global supply – continues to consolidate in an area of historical highs.
Yesterday the dollar averaged $884.08 and this Wednesday, after 1:15 p.m., it touched $879,99. In this day’s session it did not exceed $886.64.
The main factor behind this decline was the rebound in the price of copper, which rose 0.7% to US$6.04 per pound, positioning itself in an area of historical highs.
Felipe Sepúlveda Soto, chief analyst at Admirals Latin America, commented that the red metal continues to be driven by risks in global supply, “with production interruptions in South America and fears of possible US tariffs on refined copper, which has encouraged the accumulation of inventories and reduced availability in other markets.”
This scenario continues to provide strong support to the Chilean peso.
Externally, the dollar index fell 0.18% to 98.6 points, moving away from the one-month high reached earlier, while markets evaluate the magnitude of rate cuts that the Federal Reserve could implement this year.
According to Agencia EFE, The impact on the dollar of the risk of the Federal Reserve (Fed) losing independence is moderate.
The Government of Donald Trump investigates the president of the Fed, Jerome Powell, for allegedly misleading the US legislature about the scope and cost of work at the headquarters in Washington.
Powell believes that Trump is threatening him with criminal charges for not lowering interest rates.
Markets expect the Fed to leave the price of money unchanged at the end of January.
