The dollar in Chile seeks to close the last day of the week higher and end its streak of losses. While, in the weekly balance, the currency rises.
At the beginning of the day, The dollar rises $6.64 compared to yesterday’s close on the Chilean Electronic Stock Exchange (Bec) and reaches a value of $923.74 per unit. Thus, it would end a streak of two consecutive days of decline, where it lost $5.05.
While, in the week, lThe currency is headed to record losses after the currency fell $2.15 in the previous week.
The Chilean peso gives ground amid the stability of copper, one of its main supports. The value of the metal was pressured by the firmness of the dollar and the increase in inventories, which highlighted a surplus of supply.
A stronger dollar weighed on metals, making raw materials priced in the US currency more expensive. for buyers using other currencies.
“In metals, risk appetite has faded recently, but that was necessary after a very strong move that was not justified at the time,” he said. Ole Hansen, from Saxo Bank in Copenhagen.
Copper has lost 12% since hitting an all-time high of US$11,104.50 (US$5.04 a pound) last month, after a rebound driven by speculators and investment funds.
While, Copper inventories in warehouses registered on the London Metal Exchange have increased by 28% in the last month, to its highest level in four months.
Given this context, andThe three-month value of copper was stable at US$ 4.48 per pound on the main Comex futures exchange.
While, The dollar in the world was gaining strength amid the turbulence in Europe. Thus, the euro was heading towards its biggest weekly drop in two months against the dollar on Friday, due to political turmoil in France.
French markets suffered another brutal sell-off on Fridayas political uncertainty unleashed the biggest weekly rise in the premium investors demand to hold French public debt since 2011 and bank stocks plummeted.
The country’s Finance Minister, Bruno Le Maire, warned that the euro zone’s second largest economy would faced the risk of a financial crisis if the far right, or the left, won the parliamentary elections in the coming weeks.
For its part, the yen recovered after falling to one-month lows after the Bank of Japan’s decision to keep interest rates stable and resume bond purchases.
The Bank of Japan surprised markets with its decision to continue buying government debt at the current pace and to present details of its tapering plan at the July monetary policy meeting.
Bank of Japan Governor Kazuo Ueda said at a briefing that the central bank was “paying close attention” to the impact of the weak yen on inflation, adding that a rate hike in July was a possibility depending on of economic data.
Meanwhile, Thursday’s U.S. jobs data raised bets that the Federal Reserve could begin its easing cycle in September, but Analysts said the euro’s weakness was the main factor driving currency markets this week.
Given this context, The dollar against a basket of the world’s most important currencies rose 0.44% to 105.66 points.
