The dollar in Chile had a jump of $18.78 in the last day of the month, to close April at $960.33. This price, in any case, implies a decline of $19.03 compared to the price the currency had at the beginning of April.
The currency, in this way, is currently $81 above the price it had at the end of 2023, which is why The Chilean peso is among the weakest currencies in 2024, having depreciated 8.47% against the dollar.
See more: Central Bank of Chile seeks to achieve inflation goal at the lowest cost
The copper factor, key to the recovery and the fall of April 30
Copper rose 12.42% in April, key data to understand the recovery of the peso in such a volatile month for emerging currencies, in which expectations increased that the United States Federal Reserve (Fed) would behave much tougher, in terms of monetary policy, what was anticipated.
In fact, The dollar, globally, rose 4.95% in April, taking into account the DXY index, which compares the US bill against a basket of currencies. The latter allows us to consider how important the rise in the price of copper was to sustain the Chilean peso from the attacks of the international context.
However, right on the last day of April, Copper cut back from the rise it had been showing and showed an intraday drop of 2.78%.
“Copper production data did not vary with respect to the previous month, causing the Chilean currency to weaken against the US dollar,” says a daily report from the firm XBT Latam.
The study clarifies: “The price of copper experienced a decline, but maintaining firm levels above 4.5 dollars per pound and its upward trend since February. On the other hand, the dollar internationally is waiting for what will happen this May 1 with the monetary policy meeting held by the United States Federal Reserve in which no changes are expected. Even so, it will be the statements of the head of the organization, Jerome Powell, that may or may not calm the market.”
Finally, the XTB team summarizes: “For now, the exchange rate remains in the lateral range between the levels of $940 and $990, as long as the variables remain as they are now. However, if the Federal Reserve changes its speech, or if the economic data in Chile goes beyond market expectations, “The expected range for the peso dollar could vary.”
