The dollar closed lower after starting the day with clear gains in line with the behavior of recent days. The United States currency registered increases, losses and operates stable after this Wednesday it closed with slight gains after at times trading below $900.
At the close of the day, The dollar fell $1.69 compared to yesterday’s close on the Chilean Electronic Stock Exchange (BEC) and reached a value of $906.81. Thus, the currency ended a streak of two consecutive days with gains, where it added $2.9.
However, at times, the currency climbed to a high of $915.40 and then moderated its rise until it recorded losses. On the lower side, the currency stood at $906.60.
“The market’s eyes are on the employment data that will be published tomorrow in the United States, and depending on these we will be able to know if the exchange rate leaves the area of $900 – $915 that it has brought since the end of the previous month,” commented Felipe Sepúlveda, chief analyst at Admirals.
The Chilean peso strengthened in line with copper, continuing its recovery after this week’s collapse. The price of the metal is recovering after falling after halting its biggest rally in years, as strong demand expectations for the conductive metal, crucial for electrification, have not yet translated into greater consumption.
“Copper, while collaborating with the upward movement experienced by the Chilean peso, cuts in the interest rates of the main central banks allow us to consider greater dynamism in the world economy and therefore greater demand for raw materials,” he commented. Renato Campos, GHTrading Analyst
In this way, the three-month value of copper rose 0.99% to US$4.67 per pound on the main Comex futures exchange. Meanwhile, the spot value of copper rose 1.65% to US$4.50 a pound on the London Metal Exchange.
“During the night we tend to change China’s trade balance, which could impact the price of copper because the Asian country is the main global demander of the red metal,” he commented. Ricardo Bustamante, Capitaria studies analyst.
Meanwhile, the dollar in the world fell on a marked day due to the rate decision of the European Central Bank, which lowered interest rates in line with what the market expected and for the first time since 2019.
On the other hand, expectations of an early start of the monetary relaxation cycle by the United States Federal Reserve, reinforced by signs of a cooling in the labor market, also weighed on the dollar.
The number of Americans filing new claims for unemployment benefits increased last week, but the underlying strength of the labor market should continue to support the economy.
Initial claims for state unemployment benefits rose by 8,000 to a seasonally adjusted 229,000 in the week ended June 1, the Labor Department reported Thursday. Economists polled - had forecast 220,000 claims in the last week.
Now, the attention of markets and investors is focused on the farm payrolls that will be released on Friday, a data considered key, in search of clues about when the Fed could begin interest rate cuts. .
In this context, the dollar index, which measures the performance of the currency against a basket of the most important currencies in the world, including the euro, fell 0.17% to 104.09 points.
