- The US dollar falls 0.39% in the day against Chilean peso, currently quoting in 987.18.
- The dollar index (DXY) goes back 0.31% on Tuesday, consolidating within the operational range whose previous session.
- Annualized inflation increased to 4.9% from 4.7% observed the previous month.
- Copper prices record a loss of 1.58% daily, operating at this time over $ 4,2075 per pound.
- The focus of the operators will be today in the speech of Mary Daly, member of the FOMC.
The USD/CLP marked a maximum of the day in 991.01, finding aggressive vendors that dragged parity to a minimum daily in 979.76. Currently, the USD/CLP operates at 986.24, losing 0.47% in the day.
Chilean weight operates in positive terrain in the ruling of its annual inflation
According to the National Institute of Statistics of Chile (INE), the Consumer Price Index (CPI) rose 0.5% in March, complying with the estimates of analysts, located above 0.4% observed in February.
The underlying IPC increased a 0.4% monthly against 0.3% projected. In relation to annualized inflation, there was a 4.9% increase in the same period from 4.7% of the previous month. The consistent progress of inflation can slow down the rhythm of interest -rates cuts by the Central Bank of Chile, promoting the Chilean weight upwards.
The dollar index (DXY) falls 0.27% today, operating at the moment over 103.20, ending with two consecutive days upwards.
Copper prices extend their losses on Tuesday, falling 1.58%, currently operating at $ 4,2075 per Libra, signing its ninth consecutive day down.
In this scenario, the Chilean weight is listed with profits, while the USD/CLP falls 0.39% daily, consolidating within Monday’s operational range in 987.18.
The focus of the operators today will be in the speech of Mary Daly, a member of the Board of Governors of the Federal Reserve.
Technical levels in the USD/CLP
The USD/CLP established a short -term support given by the minimum of March 19 at 915.57. The following important support is at 894.25, minimum of September 30, 2024. Up, the key resistance is observed in 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 values ​​in portfolio that expire 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.
