- The dollar falls 0.33% daily against Chilean peso, currently operating in 939.39.
- The dollar index (DXY) loses 0.47%, reaching minimums not seen since October 16, 2024.
- The Jolts work and labor rotation survey was 7.74 million in January, above market estimates.
- The price of copper rebuops 2.46% today, reaching two days at $ 4,7096 per pound.
The USD/CLP established a maximum of the day at 942.62, finding vendors that dragged parity to a daily minimum in 936.43. At the time of writing, the USD/CLP quotes over 939.08, losing 0.37% today.
Chilean peso earns traction in the midst of the fall of the US dollar
According to information from the United States Labor Statistics Office, the Jolts Work and Rotation Offers Survey registered 7.74 million positions in January, exceeding 7.63 million estimated and 7,508 million reached the previous month.
After these results, the dollar index (DXY) decreases 0.42% on Tuesday, reaching levels not seen since October 16, 2024 in 103.32.
In this context, the Chilean weight is listed up, consolidating within the operating range of Monday’s session, while the USD/CLP falls 0.33% in the day, ending with two consecutive sessions upwards, operating currently at 939.39.
On the other hand, the price of copper rises 2.46% daily, reaching maximums of March 7 in $ 4,7312 per pound.
Technical levels in the USD/CLP
The USD/CLP remains oscillating between a short -term resistance zone given by the maximum of February 28 in 951.04 and a support in 924.55, minimum of March 6. The next key resistance is observed in 1,017.05, pivot point of January 17.
USD/CLP daily graphics
US dollar FAQS
The US dollar (USD) is the official currency of the United States of America, and the “de facto” currency of a significant number of other countries where it is in circulation along with local tickets. According to data from 2022, it is the most negotiated currency in the world, with more than 88% of all global currency change operations, which is equivalent to an average of 6.6 billion dollars in daily transactions. After World War II, the USD took over the pound sterling as a world reserve currency.
The most important individual factor that influences the value of the US dollar is monetary policy, which is determined by the Federal Reserve (FED). The Fed has two mandates: to achieve price stability (control inflation) and promote full employment. Its main tool to achieve these two objectives is to adjust interest rates. When prices rise too quickly and inflation exceeds the 2% objective set by the Fed, it rises the types, which favors the price of the dollar. When inflation falls below 2% or the unemployment rate is too high, the Fed can lower interest rates, which weighs on the dollar.
In extreme situations, the Federal Reserve can also print more dollars and promulgate quantitative flexibility (QE). The QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is an unconventional policy measure that is used when the credit has been exhausted because banks do not lend each other (for fear of the default of the counterparts). It is the last resort when it is unlikely that a simple decrease in interest rates will achieve the necessary result. It was the weapon chosen by the Fed to combat the contraction of the credit that occurred during the great financial crisis of 2008. It is that the Fed prints more dollars and uses them to buy bonds of the US government, mainly of financial institutions. Which usually leads to a weakening of the US dollar.
The quantitative hardening (QT) is the reverse process for which the Federal Reserve stops buying bonds from financial institutions and does not reinvote the capital of the wallet values ​​that overcome in new purchases. It is usually positive for the US dollar.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
