Chile: USD moderates its decline and is trading just below $980 in the afternoon.

The exchange rate advanced by more than $40 in the last week, which was marked by signals from the Fed.

On Monday, in Chile, the dollar declined, correcting a portion of its trend over the past few days, as market participants remained on hold ahead of the release of new economic figures in the United States.

Of particular note is the ‘favorite data of the Federal Reserve,’ scheduled to be released on Friday when both Chilean and American markets are closed.

The exchange rate decreased by $5.05 to $979.45 at the beginning of the afternoon according to market data, after dropping to an intraday low of $974 before noon, following a trend reversal in line with an increase in US Treasury bond yields.

The dollar index fell by 0.2% to 104.22 points, indicating a decrease in global demand for the greenback, while Comex copper rose by 0.34% to $4.02 per pound.

Today’s decline comes after the exchange rate advanced by more than $40 in the last week, which was marked by signals from the Federal Reserve and other central banks of developed countries, collectively prompting dollar purchases globally.

The possibility of monetary incentives in China contributes to a much more robust scenario for commodities, and that’s where the Chilean peso tends to gain traction. Additionally, there is a more buoyant economic outlook than previously anticipated in Chile, and therefore, ‘it’s not uncommon that given the volatility in recent days, setbacks occur in this case.’

On Thursday, the US will release the final reading of the fourth-quarter 2023 GDP, while on Friday, the core Personal Consumption Expenditures Price Index (PCE) for February will be published. This indicator, excluding food and energy, the most volatile components, is known in the market as the Fed’s favorite inflation data.