Futures for the metal, main export of Chile, rose to $4.39 per pound on the Comex market, reaching new nearly two-year highs.

The dollar was sharply lower this Wednesday, amid a solid rebound in copper prices and as traders reassess yesterday’s tightening of credit in the afternoon following comments from Federal Reserve Chairman Jerome Powell, who indicated a lack of progress in controlling inflation.

Before noon, the dollar dropped by $10.13 to $972.75 in the Bloomberg series, reaching session lows. Comex copper futures rebounded 1.44% to $4.39 per pound, returning to their highest levels since mid-2022. The dollar was trading steady against a basket of developed peers.

Copper prices are rising again this Wednesday, supported by a promising future due to the expected demand for the metal over the next 10 years. A structural deficit could suggest a significant rally.

The apparent new momentum experienced by the red metal is materializing on a day when the dollar internationally slows its advance and indicates setbacks, allowing the local exchange rate to experience declines at its opening.

This occurs in a context where financial conditions are easing in the US credit market, after yesterday the two-year interest rate reached 5% for the first time since November, pressured by Powell’s comments.

The Fed chairman acknowledges that US inflation is lagging in converging to its target and mentions that it will require waiting before starting the process of rate cuts in its monetary policy. This motivates an initial upward reaction in global interest rates, but it has been reversing lately.