Despite the fact that the day began to fall, taking institutional advantage from price-going to buying foreign currency, which triggered the exchange rate.
The increase in copper is not enough for the exchange rate in Chile to reverse the upward trend it has brought in the past few days. And even though starting the day to the downside, institutions are taking advantage of prices to buy large amounts of dollars, so the price of the US currency in Chile skyrocketed and fell short to $ 700.
The closing day leaves the exchange rate $ 698, which is an increase of $ 4.2 compared to yesterday's closing.
With this value, the dollar in Chile reaches highest value since February 19, 2016.
This shows that it was institutional purchases – especially AFP – that moved the value of the North American currency on the local market that on that day the reference currency for the Chilean peso, such as the Mexican peso and Brazilian real, behaved totally. besides Chilean currency and appreciates more than 1% in a day.
In fact, in the morning everything shows that the dollar in Chile will take a break considering copper recovered almost 1% on the London Metal Exchange after two holidays in the UK.
But different lines taken in the local currency in front of the currency have been dragged much earlier. And is it on the moonl Chilean Peso depreciated 3.61% according to Bloomberg figures, thus becoming the second new currency to lose most of its strength against the dollar in the last month of the year. Meanwhile, in the same period the Mexican peso rose 3.5%.
"The Chilean peso, meanwhile, is one of the most depreciated currencies during December, aligning itself with the behavior of other comparable currencies." Behind this, the decline in copper prices, which traded below US $ 2.70 per pound, was seen. and an increase in the sovereign risk premium for Chile, "Bci said in a report in the morning.