The dollar rose $0.92 in Chile in the round of this Tuesday, June 18, 2024, to settle at the close of the day at $936.38. In this way, the US currency continues the upward trend that has been seen in recent days, while the market awaits the monetary policy decision that the Central Bank of Chile will make today afternoon.
“If a 50 basis point cut occurs, we could see a stronger appreciation of the dollar against our currency”, he estimated Lorenzo Matus, market strategist XTB Latam. In that case, the analyst said, “the current barrier at $936 could be overcome.”
“However, If cuts remain at 25 points, the market is likely to remain sideways and pay more attention to the international context,” he indicated.
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For its part, Ricardo Bustamante, deputy manager of studies at Capitaria, reported: “During this afternoon, the Central Bank of Chile’s rate decision will be revealed, which will be key to determining the next short-term movements in the exchange rate. If there are no surprises in interest rates, where a decrease of 25 basis points is expected to bring it to 5.75%, “This afternoon’s statement and the Monetary Policy Report (IPoM), which will be released tomorrow, may be key to determining the next exchange rate movements.”
Meanwhile, Felipe Sepúlveda, chief analyst at Admirals, indicated: “For now, the eyes of the national market are on the decisions of the Central Bank of Chile and a large part has already discounted a drop of 25 basis points and any different scenario could generate a surpriseTherefore, if the Central Bank lowers the rate by 25 points or more, it is likely that we could see the exchange rate seek the $950 area throughout the week. We would only see declines if the Central Bank maintains the rate or in its report indicates a better economic scenario for the rest of the year.”
