Chile: Dollar Opens with Strong Rise After Holiday Amid Copper Decline Due to Profit-Taking

The dollar opened with a strong advance on Wednesday, following the May 21 holiday, amid a decline in copper prices, the main export of Chil

Ignacio Teson•Wednesday, May 22, 2024•1 min read

The dollar opened with a strong increase in Chile following a holiday, driven by a decline in copper prices due to profit-taking. This trend reflects broader market movements and investor strategies in response to fluctuations in the commodities market.

The dollar opened with a strong advance on Wednesday, following the May 21 holiday, amid a decline in copper prices due to profit-taking after reaching a historic high on Monday.

In early trading, the dollar was quoted at 896.70 CLP, an increase of 7.68 CLP from Monday’s close, according to Bloomberg data. Copper prices on the Comex futures market plummeted 3.38% to $4.93 per pound, down from the highs of around $5.20 per pound reached earlier in the week.

Copper prices dropped on Wednesday as funds took profits from a rally to historic highs, which has dampened industrial consumers’ appetite for purchasing the metal.

Meanwhile, the dollar index rose 0.17% as investors awaited the minutes from the latest Federal Reserve meeting for clues on the central bank’s interest rate trajectory.

In other international news, Israel recalled its ambassadors to Spain, Ireland, and Norway on Wednesday to deliver a “severe reprimand” to the three countries after they pledged to recognize the Palestinian State next week.

Israeli Foreign Minister Israel Katz described the show of support for the Palestinians as “madness” and added, “History will remember that Spain, Norway, and Ireland decided to award a gold medal to the killers and rapists of Hamas.”

The move will add to the number of 27 EU members recognizing the Palestinian State but does not include heavyweight bloc members like France. In a setback to their hopes for broader diplomatic momentum, other countries that Madrid and Dublin had courted in recent weeks to recognize a Palestinian State, including Belgium, Malta, and Slovenia, did not immediately follow suit.

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ABOUT THE AUTHOR See More

Ignacio Teson

Economist and Financial Analyst

Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.