INSUBCONTINENT EXCLUSIVE:
This represents the strongest position for the peso against the dollar in recent weeks, continuing the appreciating trend observed since
continued to push the peso higher as copper futures rebounded, with the currency breaking through the important psychological barrier of 925
CLP per USD before settling at the current 921.66 level as European markets opened.Market Drivers and CommentaryCopper Price RallyThe
from approximately $4.00 last week
The bank has maintained its policy interest rate at 5% since January 2025, providing a relatively attractive yield compared to other
emerging markets.Chilean Peso Surges to Multi-Week High as Copper Rally Fuels Gains
globally has created a favorable environment for the Chilean peso, with markets now firmly expecting three interest rate cuts from the
tariff environment than initially feared, helping emerging market currencies including the Chilean peso.Trading Volumes and FlowsTrading
volumes have been above average this morning, with approximately $450 million exchanged in the spot market during the first two hours of
ETF flows show increased interest in Chilean assets, with the largest Chile-focused ETF reporting inflows of $28 million over the past
week.Technical AnalysisThe USD/CLP pair has broken below the key support level of 923.73 observed earlier this month, suggesting potential
for further peso strengthening
The current price of 921.66 represents a breakthrough of the lower boundary of the trading range (923-945) that had defined the market since
early March.Technical analysts point to the next major support level at 915, with resistance now at the previously broken 923 level.Market
OutlookTrading Economics had previously predicted the USD/CLP exchange rate to reach 934.22 by the end of this quarter, but the recent
strengthening suggests this forecast may need revision.Industry experts now suggest that if copper prices maintain their momentum and global
risk appetite remains strong, the peso could potentially test the 915 level in the coming days
However, caution remains over potential volatility tied to upcoming US economic data releases and Federal Reserve communications scheduled
