The price of the dollar plunged below $970 on Thursday, as copper reached new 22-month highs, buoyed by the strong results of a major chip manufacturer, which provided additional momentum to the metal’s recent gains.

The price of the dollar plunged below $970 on Thursday, as copper reached new 22-month highs, buoyed by the strong results of a major chip manufacturer, which provided additional momentum to the metal’s recent gains.

The price of copper is likely supporting the Chilean peso, as Chile’s primary export is precisely copper.

This occurred despite a slight increase in international purchases of dollars, indicating fresh signs that the economy remains strong in the United States.

The currency fell by $11.8 to $966.8 at the close of the session in Chile, marking its largest drop in two weeks, according to Bloomberg quotes. Comex copper climbed by 2.17% to $4.46 per pound, reaching a high not seen since early June 2022.

The exchange rate plummeted even as the dollar index rose by 0.2% and the two-year Treasury yield recovered to levels of 5%, the highest since November. Economic data such as the latest jobless claims in the US were stronger than expected, and senior Federal Reserve officials have joined the rhetoric of not easing credit until consistent signs of inflation easing are observed.

Behind this new copper advance were the results of the Taiwanese TSMC, the world’s largest semiconductor manufacturer, which, although it trimmed its future forecasts, reported solid earnings in the first quarter.

The Chilean peso was the strongest emerging currency of the day, only accompanied by the Peruvian sol, some Asian currencies, and the Russian ruble.

Ultimately, if global demand exceeds expectations, it will push copper prices higher. The rally is also being sustained by increased global activity, the energy transition, and most recently, the potential for increased demand for data centers and everything related to AI.