- The Dollar loses 0.11% daily against the Chilean Peso, oscillating within the range of the previous day.
- The US Producer Price Index stood at 3% year-on-year in November, exceeding market estimates.
- Weekly jobless claims stood at 242,000, above analysts’ projections.
USD/CLP established a daily high at 975.20, where it found sellers that dragged the cross to a daily low at 972.65. At the time of writing, the USD/CLP is trading at 974.25, falling 0.11% on Thursday.
The Chilean peso appreciates after economic data from the United States
The US Producer Price Index registered an increase of 3% year-on-year in November, higher than the previous and estimated record of 2.6%. Likewise, weekly applications for unemployment benefits shot up to 242,000 in the week ending December 6, above the 22,000 expected and the 225,000 reached in the previous week.
The Chilean Peso has consolidated in a sideways range since November 25, while the USD/CLP has made a series of higher highs pushing the parity lower pointing to the next support at 940.90, October 24 low.
Technical levels in the USD/CLP
USD/CLP established short-term resistance given by the November 22 high at 987.01. The next key resistance zone is seen at 989.15, the high of November 14. The closest support is at 940.90, the October 24 low in convergence with the 50% Fibonacci retracement. The next key support is seen at 894.25, the pivot point of September 30.
USD/CLP Daily Chart
The US Dollar FAQs
The United States 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 alongside local banknotes. According to 2022 data, it is the most traded currency in the world, with more than 88% of all global currency exchange operations, equivalent to an average of $6.6 trillion in daily transactions. After World War II, the USD took over from the pound sterling as the world’s reserve currency.
The single most important factor influencing the value of the US Dollar is monetary policy, which is determined by the Federal Reserve (Fed). The Fed has two mandates: achieve price stability (control inflation) and promote full employment. Your main tool to achieve these two objectives is to adjust interest rates. When prices rise too quickly and inflation exceeds the 2% target set by the Fed, the Fed raises rates, 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 enact quantitative easing (QE). QE is the process by which the Fed substantially increases the flow of credit into a clogged financial system. This is an unconventional policy measure used when credit has dried up because banks do not lend to each other (for fear of counterparty default). It is a last resort when a simple lowering of interest rates is unlikely to achieve the necessary result. It was the Fed’s weapon of choice to combat the credit crunch that occurred during the Great Financial Crisis of 2008. It involves the Fed printing more dollars and using them to buy US government bonds, primarily from financial institutions. QE usually leads to a weakening of the US Dollar.
Quantitative tightening (QT) is the reverse process by which the Federal Reserve stops purchasing bonds from financial institutions and does not reinvest the principal of maturing portfolio securities 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.