The price of the dollar in Chile today, October 20, 2023: This is how…

On October 20, 2023 The dollar rose in Chile by $1.40 and ended the week at $941.25. According to Bloomberg data. The move comes after we learned last night that Standard & Poor’s downgraded Chile’s long-term outlook from stable to negative due to weak political consensus on key aspects of the political and economic agenda.

In this way, the US currency barely rose by $1.25 compared to Friday, October 13, after reaching intraday highs near $950.

The latest statements by members of the US Federal Reserve, including its Chairman Jerome Powell, They are beginning to show greater openness by leaving interest rate increases asideThis is an uncomfortable situation for emerging currencies such as the Chilean peso.

But Powell’s statements carry something positive, which is that The official ruled out raising interest rates at the next November meetingBut there is still potential for future increases.

In this context, the dollar index (DXY), which compares the US currency with other global currencies, decreased by 0.1%, reaching 106.158.

The negative influence that comes from China

“The dollar’s seemingly unstoppable upward trend is due, among other factors, to… The behavior witnessed in the Chinese marketWhich appears to continue an uncontrollable decline, once again reaching low levels not seen since November 2022.” Sebastian CastellanosXTB Latam Market Strategist.

Castellanos explained that despite the release of Chinese GDP and retail sales data during the week, which were favorable for the economy of the Asian giant, the crisis that its real estate sector is experiencing, due to the fall of the largest real estate companies in the world, continues in the country. Important raw materials such as copper are pulled down, recording new losses and approaching the annual minimum for the regions.

“This is in addition to the statements of the Central Bank of Chile, which is reluctant to take intervention measures,” the executive said.