After Powell's words restructured expectations of a rate hike, the exchange rate lost $ 6.
Yesterday, the president of the US Federal Reserve gave a speech in which he expected a rate hike in the market and was immediately distracted from the dollar to the global level. But, as it happened yesterday after the close of the exchange market, the local exchange rate falls on its opening.
In the first day operations, the dollar in Chile is $ 669.3, which represents a sharp drop of $ 6.2 compared with yesterday’s price.
The key, according to market agents, is in the comments made yesterday by Fed Chairman Jerome Powell. In a speech in which investors were waiting, the official said that the rate was close to its neutral level, which gave light that the central center of the United States could reverse the process of normalizing monetary policy.
You may be interested: you know how much the dollar will be at the end of December, according to experts
This caused a boom this morning in emerging currencies, where most of them took advantage of the dollar. It should be remembered that this class of assets was in trouble during the year to the extent that the Fed gave in the first months of the year a more aggressive agenda for tariff increases than what was envisaged in 2017.
For its part, the global dollar price, measured by the dollar index, which contrasts with the basket of currencies, is recovering from yesterday’s fall with Powell’s words.