The dollar began the day with a strong decline, but moderated its fall at the close in a marked session by the US CPI data, following the decision adopted by the Fed at the end of its two-day meeting. Copper trades higher on the London Metal Exchange.
The American currency It fell $5.15 to $917, according to data from the Chilean Electronic Stock Exchange.
“After the interest rate decision by the Federal Reservewhere the general consensus maintains that we will see at most 2 interest rate cuts this year, the dollar internationally has reacted upwards and the market understands that the FED will not change its leaf on the road this year,” said Felipe Sepúlveda of Admirals.
The US CPI showed no variation in Mayor, and was below market forecasts.
“During this morning we knew the CPI of the United Stateswhich showed no variation but generated the bearish movements that reached the minimums below 910 pesos,” said Rafael Weber of Capitaria.
The Fed left rates unchanged and projected a single rate cut for the current year. In addition, the agency updated its projections for the US economy. There were also words from Jerome Powell.
This is the seventh consecutive meeting in which the Rates remain unchanged in the US in the range of 5.25%-5.50%, its highest level since January 2001. The last rate increase took place in July of last year, when the agency raised the rate by 25 basis points.
“The fall in bonds to quarterly lows determines a negative trajectory for the dollar internationally, allowing risk appetite to take over the market. What is interesting is the probability of cuts and stimuli that encourage banks and the demand for raw materials, facilitating advances in oil, copper and various metals,” indicated Renato Campos of GHTrading.
Copper, for its part, is rising at this time on the London Metal Exchange, after the US CPI data.
“The price of copper futures registers increases in prices, reaching again above 4.5 dollars a pound which supports the movements seen today,” Weber added.
