- The dollar rises 1.14% daily against Chilean peso, currently operated on 993.03.
- The dollar index (DXY) rises 0.85%, spinning five consecutive sessions with profits.
- The monthly economic activity index of Chile (IMACEC) registered an increase of 6.6% in December, exceeding 2.1% reached in November.
- The USM manufacturing PMI of the ISM was placed at 50.9, improving market projections.
The USD/CLP established a daily minimum at 981.90, where aggressive buyers attracted that promoted parity to a maximum not seen from January 22 in 1,001.60. Currently, the USD/CLP quotes over 993.90, winning 1.14% today.
The Chilean peso loses traction against the dollar in the middle of a risk of risk aversion
The dollar (DXY) index rebounds 0.85% on Monday, quoting at the time of writing about 109.33, reaching maximum of January 13 in 109.80, after the tariff imposition of Donald Trump to Canada, Mexico and China. The US dollar has acted as an active refuge in a context where investors are risk adverse.
According to information provided by the Office Administration Institute (ISM), the United States manufacturing PMI was 50.9 in January, above 49.8 estimated and December 49.3.
On the other hand, the Monthly Economic Activity Index of Chile (IMACEC) rose 6.6% in December, exceeding 2.1% recorded in November.
The Chilean weight ends with a streak of three consecutive sessions, while the USD/CLP rises 1.14% in the day, visiting maximums of January 22 in 1,001.60.
Technical levels in the USD/CLP
The USD/CLP established a short -term support given by the minimum of January 27 at 979.94. The following key support is observed at 966.89, minimum of December 6, 2024. Uploaded, the closest resistance is at 1,017.05, pivot point of January 17.
USD/CLP daily graphics
US dollar FAQS
The US dollar (USD) is the official currency of the United States of America, and the “de facto” currency of a significant number of other countries where it is in circulation along with local tickets. According to data from 2022, it is the most negotiated currency in the world, with more than 88% of all global currency change operations, which is equivalent to an average of 6.6 billion dollars in daily transactions. After World War II, the USD took over the pound sterling as a world reserve currency.
The most important individual factor that influences the value of the US dollar is monetary policy, which is determined by the Federal Reserve (FED). The Fed has two mandates: to achieve price stability (control inflation) and promote full employment. Its main tool to achieve these two objectives is to adjust interest rates. When prices rise too quickly and inflation exceeds the 2% objective set by the Fed, it rises the types, which favors the price of the dollar. When inflation falls below 2% or the unemployment rate is too high, the Fed can lower interest rates, which weighs on the dollar.
In extreme situations, the Federal Reserve can also print more dollars and promulgate quantitative flexibility (QE). The QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is an unconventional policy measure that is used when the credit has been exhausted because banks do not lend each other (for fear of the default of the counterparts). It is the last resort when it is unlikely that a simple decrease in interest rates will achieve the necessary result. It was the weapon chosen by the Fed to combat the contraction of the credit that occurred during the great financial crisis of 2008. It is that the Fed prints more dollars and uses them to buy bonds of the US government, mainly of financial institutions. Which usually leads to a weakening of the US dollar.
The quantitative hardening (QT) is the reverse process for which the Federal Reserve stops buying bonds from financial institutions and does not reinvote the capital of the wallet values ​​that overcome in new purchases. It is usually positive for the US dollar.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
