Despite the fact that the day began to fall, the institutional ones, taking advantage of the price, went out to buy foreign currency, which caused a change in the course.
Copper growth was not enough for the exchange rate in Chile to reverse the upward trend that has been observed in recent days. And this is despite the fact that, despite the start of the day, the institutions used the price to buy dollars in bulk, so the price of US currency in Chile soared and did not reach 700 dollars.
Closing day left exchange rate in 698 dollars, which is 4.2 dollars more than yesterday's closing.
With this value, the dollar in Chile reaches the highest value since February 19, 2016.
This shows that it is the institutional purchases, especially the AFP, that affect the value of the North American currency in the local market in the sense that daily benchmark currencies for the Chilean peso, such as the Mexican peso and the Brazilian real, behaved completely Chilean currency and strengthened more than 1% per day.
In fact, in the morning everything indicated that the dollar in Chile would take a break, considering that copper had recovered by almost 1% on the London Metal Exchange after two days off in England.
But the other way in which the local currency went in front of their peers, was delayed much earlier. And this is a monthl Chilean peso depreciates 3.61% according to BloombergThus, it becomes the second emerging currency, which in the last month of the year loses its greatest popularity against the dollar. Meanwhile, over the same period, the Mexican peso grew by 3.5%.
"Meanwhile, the Chilean peso is one of the most depreciating currencies in December, not consistent with the behavior of other comparable currencies." Behind this is the fall in copper prices, which are trading below $ 2.70 per pound. and an increase in the sovereign risk premium for Chile, ”said a Bci report, published in the morning.