INSUBCONTINENT EXCLUSIVE:
Yesterday, the peso climbed from 982.65 to 986.75, a 4.5% drop since late March when it stood at 944.80.Overnight, profit-taking pulled the
rate back to 987.05, as traders awaited US inflation data
at 1007.33 earlier this month, the currency has struggled to regain ground
Mexico, and China, raise US inflation fears, strengthening the dollar
Chile, heavily reliant on copper exports, faces additional strain.Tariffs and Copper Prices Pressure Chilean Peso on April 11, 2025
(Photo Internet reproduction)Copper prices, forecasted to stay above $4 per pound this year, likely peaked due to a US-China trade war
Near-zero real interest rates, a 2%+ current account deficit, and low foreign exchange reserves at 14% of GDP leave little buffer against
external shocks.The central bank head reported that the peso lost value, interest rates dropped, and the stock market fell after the US
Meanwhile, the iShares MSCI Chile ETF saw $15 million in outflows on April 10, reflecting investor unease.Technically, the USD/CLP pair
shows a V-shaped recovery from 920 in late March, now trading above short-term moving averages
However, the price hovers near the upper Bollinger Band at 987.13, indicating overbought conditions.Support sits at 982.65, with resistance
at 992.01 and a stronger barrier at 1007.33
month-on-month and 3.60% year-on-year, could further bolster the dollar if inflation exceeds expectations
For Chile, a copper price recovery or central bank intervention near 1,000 remains a faint hope against mounting global pressures.
