The exchange rate was trading at local lows, after falling nearly $8 last week.

The dollar fell below $945 this Monday, as the copper rally extended to new two-year highs, and investors prepared for the upcoming U.S. Federal Reserve meeting, which will conclude with a policy announcement during Chile’s holiday on Wednesday.

The currency dropped $6.5 to $944.2, reaching lows on screens, after having retreated $7.72 last week.

Meanwhile, Comex copper jumped 1.26% to $4.63 per pound, reaching new two-year highs.

The rise in the metal is driven by a supply deficit stemming from the boom in industries such as electromobility, as well as negotiations between BHP and Anglo American towards potentially creating the world’s largest copper producer.

Beyond the copper factor, focus remains on the interest rate environment. This week’s major event is the U.S. Federal Reserve meeting, which begins tomorrow, Tuesday, and concludes on Wednesday, May 1, with its monetary policy announcement. The Chilean market will be closed that day due to the Labor Day holiday.

Fed Chairman Jerome Powell is expected to adopt a tougher tone this week, given the lack of disinflationary progress so far this year, and might indicate fewer rate cuts this year, aligning more closely with current market expectations of one to two cuts, compared to the median expectation of three cuts among its members published in March.

The Dollar Index, which measures the dollar against a basket of developed peers, was down 0.24% at 105.69 points. This movement was largely influenced by the Japanese yen, which strengthened by 1.09% amid speculations that the Bank of Japan may have intervened in the forex market for the first time since 2022.