Tuesday , November 19 2019
Home / chile / The dollar fell in Chile today

The dollar fell in Chile today



After Powell's words moderated expectations of a rate hike, the exchange rate lost $ 6 during the day.

The President of the United States Federal Reserve gave a speech yesterday which moderated expectations of rising interest rates on the market and immediately reduced from the dollar to the global level. But because this happened yesterday after the closing of the foreign exchange market, local exchange rates reacted today.

At the close of the operation that day, the dollar in Chile is $ 669.5, which is a sharp decline of $ 6 compared to yesterday's price.

The key, according to market agents, was comments made yesterday by the head of the Fed, Jerome Powell. In a speech that made investors in tension, the authorities said that the interest rate was approaching a neutral level, which gave the light that the US center could take a break in the monetary normalization process.

You might be interested: Know how much the dollar will be at the end of December, according to experts

This resulted in the current boom in developing currencies, which currently increases in blocks against the dollar, with a few exceptions.

It must be remembered that this asset class has experienced difficulties during 2018 due to the fact that in the first months of this year the Fed showed signs of a more aggressive tariff schedule than what was contemplated in 2017.

For its part, the global greenback's price – measured by the Dollar Index, which contrasts with a basket of currencies – operates almost unchanged after falling yesterday with Powell's words.

Of course, more volatility is expected in the short term, given that investors are still waiting for new developments in the trade war between China and the United States. "The market showed caution before the start of the G-20 meeting, especially after Donald Trump commented that there was still plenty & # 39; what was left to be resolved in the struggle for tariffs with China," said Ricardo Bustamante, head of trade studies at Capitaria

In this line, analysts argue that after the example, which will take place on Saturday in Buenos Aires, there may be further clarity about the prospect of the foreign exchange market.


Source link