Monday , January 25 2021

Dollar closes strongly with the Chilean peso following weak US inflation data

The dollar fell sharply against the Chilean peso Wednesday, in the midst of the international weakness of the currency after the publication of US inflation data.

At the end of interbank market operations, the dollar was quoted at $ 677.8, which is a sharp decline of $ 5.1.

Inflation in the US detects zero variation in November, and attention is focused on Fed

This movement is largely explained by the withdrawal of the North American currency on the external markets. The dollar index – which measures the currency's performance against six currencies in the world – weaken 0.37%.

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This, after the publication of US inflation data, reported a zero variation in November.

XTB Latam's market analyst, Carlos Quezada, explains that US macro data shows a stabilization of core inflation of over 2%.

"For now, the market is already assuming a new increase in December, but by 2019 we would only have 1 or 2 increases, which are depreciated usd internationally. The local exchange rate is combined with the USD weakness," adds Quezada.

In addition, the increase in appetite for risk among investors, following the renewed optimism in commercial war.

With this scenario, the growing currencies grow sharply, and the South African rand leads the list of ratings with an increase of 0.96%. Behind the real and the Chilean peso with advances of 0.92% and 0.75% respectively.

In the opposite lane, the Indian rupee is the only currency that falls against the dollar with depreciation of 0.23%.

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