The dollar in Chile moderated its strong advance in the morning to end up trading at $866 |  Financial newspaper

The dollar in Chile moderated its rise towards the end of the session, after a volatile day Global markets have been hit by renewed fears of recession, following the Federal Reserve’s decision to tighten monetary policy in an attempt to contain still-high inflation. The coin thus ended up trading at $866, with an appreciation of $9 from Wednesday..

The currency opened trading at $864.91, up $7.91 from the previous day’s close, according to Bloomberg data, but accelerated its advance during the morning to settle at 872. $.82, up $15.83, at peak levels since December. After noon, however, he was losing his strength.

According to Esteban Zendrini, market analyst at XTB Latam, the day was marked by the decision of the Fed in the United States, which yesterday fixed the interest rate in a range between 1.50% and 1.75%. , seeking to control inflation after the CPI peak recorded in May.

Jerome Powell, president of the US central bank, assured that although the latest 75 basis point hike was higher than usual, he does not rule out another in the same levels for July if the macroeconomic data continue to put pressure on inflation.

“We have seen that the price of copper is accompanied by falls during the daydue to a possible recession and driven by tighter monetary policies around the world, in addition to threatened demand for metals and consumer goods due to the resurgence of the coronavirus in China, which has caused the metal to decline red, directly impacting the exchange rate at the local level,” he explained. In this context, he indicates that “we remain attentive to what can happen in relation to the fear that the market has of an economic recession and also attentive to the way in which the various central banks take measures to control inflation. while we see that the exchange rate is positioned with floors of $870 and is looking for levels near $875″.

On the London Metal Exchange (LME), meanwhile, the spot copper price ended down 1.64% at US$4,130 a pound, Cochilco reported.

According to Ricardo Bustamante, Head of Studies trade de Capitaria, “the projections point to a greater economic weakening at the global level, a situation that once again impacts the price of copper, being an additional argument for the promotion of the greenback at the local level”. With these fundamentals overseas, added to the local political uncertainty in the run-up to the plebiscite to exit the new constitution, should support further dollar recovery in our country in the near term.”

The highest rate hike in the United States in three decades will continue to put pressure on the dollar and inflation in Chile


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