Monday , January 25 2021

The dollar is at the highest level of the year, and in Chile it closes over $ 660 on a cautious investor day

In the midst of the uncertainty of trade war, together with the threat of a new government's shutdown, investors are seeking refuge in the North American currency.

The dollar expands its bullish streak on international markets, in the face of uncertainty due to trade war and the threat of a new closure of the US government.

The dollar index – the indicator that measures currency performance against a basket of six currencies in the world – operates with an advance of 0.44%, the highest level since December 19 last. If this continues, the North American currency will target its eighth consecutive day upward.

Analyst of XTB Latam, Carlos Quezada, explains that "the market is not very optimistic for an agreement before March 1, which is the deadline at the G20 summit to stop tariffs."

At the same time, the deadline for reaching an agreement to avoid a paralysis of government approaches is that the conversation between President Trump and Congress on Immigration Policy was not overcome over the weekend.

At local level, a few minutes after the completion of operations on the local interbank market, the dollar has been quoted at $ 663.3, an increase of $ 4.3.

The movement of the Chilean peso is in line with the decline in copper prices, a major reference for the national currency. The red metal contracts for March are operating at a loss of $ 0.91 and stand at US $ 2.78 on the London Metal Exchange, in the midst of trade war uncertainty.

"In addition, another meeting of this type is scheduled for February 14 and 15; it is important that this risk scenario begin to fall so that the copper price is stabilized according to its medium-term foundation. at $ 662 and the $ 655 support, estimates the analyst from Alpari Research, César Valencia.

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