The dollar maintains its downward trend that resumed this Monday. Since the inflation data in the United States was better than expected, the market assumed the end of the cycle of rate hikes by the Federal Reserve ended and this pushed the superpower’s currency downward, both in Chile like in the world.
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However, Investors will know today the minutes of the Federal Reserve’s last rate decision meetingwhere the market will be able to confirm, adjust or reverse its expectations about the future of the cost of borrowing in the superpower.
In this way, facing the last part of the day, The dollar falls $5.2 compared to yesterday’s close on the Chilean Electronic Stock Exchange (Bec) and reaches a value of $870.90 per unit. If this continues, the currency would record two consecutive days of decline.
However, at times in the morning, the currency registered gains compared to yesterday’s close. Thus, the dollar reached a maximum of $879.15 and then moderated its rise until resuming its fall.
“The price of the dollar shows little movement todayin line with stability in its main external fundamentals,” commented Capitaria’s deputy manager of trading studies, Ricardo Bustamante.
The Chilean peso limited its advance amid the decline in copper, one of its main supports. The price of the metal lost ground after a day where the value of copper recorded gains of over 1%.
Thus, The three-month value of copper falls 0.20% to US$3.81 per pound on the main futures exchange, Comex. While the spot value closed up 0.93% at US$3.77 per pound on the London Metal Exchange.
Meanwhile, from Reuters, they stressed that investors’ attention is now focused on the minutes of the last Fed meeting. Signs of slowing inflation in the United States have raised expectations that the central bank is done raising rates.
Specifically, markets expect the Fed to keep rates unchanged at the December meeting and They currently value the possibility of a cut of at least 25 basis points for May at 60%, according to CME’s FedWatch tool. Lower rates reduce the opportunity cost of holding bullion.
Thus, The dollar in the world remained stable waiting to know the Fed minutes after noon today.
The dollar index – which measures the performance of the currency against a basket of the world’s most important currencies – fell 0.17% to 103.26 points.