Chile: The dollar surpasses $980 at the beginning of the afternoon in a volatile session

The exchange rate surpassed the $980 mark on Tuesday in the Chilean market, as new dollar purchases driven by interest rate differentials left their mark, while investors weighed new economic figures in the United States and the development of key events for the Chinese economy.

Around 2:00 PM, the dollar rose by $4.86 to $981 on screens, after reaching a peak of $981 at noon, which marked a sudden change in trend from its mid-morning declines. The exchange rate started the week with a sharp increase.

Comex copper,which is the main export of Chile, decreased by 0.27% and the dollar index declined by 0.12%, while global stock markets in general posted losses. Investors turned to bonds, causing interest rates to fall across international markets, including Chile.

The reasons are due to “an offshore flow (of foreign agents) that has taken advantage of Chilean Treasury auctions,” considering that the ministry announced a $100 million dollar auction for Tuesday. The considerations of foreigners in their eagerness to buy dollars are related to an interest rate issue.

This occurs in a context where the President of Spain, Pedro Sánchez, will sign agreements with the President of Brazil, Luiz Inácio Lula da Silva, and with the President of Chile, Gabriel Boric, during his visit this week to both countries to increase bilateral strategic alliances and strengthen cooperation of all kinds.

Today it was revealed that the ISM Services Index in the US was slightly lower than expected, maintaining its levels, while factory orders for January fell more than expected. Previously, China’s indices did not show significant deviations from forecasts, with the market’s attention focused on the expected meetings of the legislative assembly of the Asian giant.