The US dollar in Chile traded below the $890 mark this Tuesday, averaging $886.57 according to data from the Chilean Electronic Exchange. The greenback trended lower after hitting highs of $888.98 earlier in the day.
This decline follows yesterday's close of $893.10. The move is primarily driven by a recovery in copper prices and increased stability in the international geopolitical landscape.
Market Factors
Copper prices reached levels near their six-week highs. Felipe Sepúlveda Soto, Head of Analysis at Admirals Latin America, noted that the commodity rose by approximately US$6 per pound.
Sepúlveda explained that this surge is driven by expectations that the United States and Iran will resume talks to achieve a more lasting ceasefire. According to the analyst, this scenario has moderated oil prices and eased inflationary concerns, directly benefiting the Chilean peso.
Meanwhile, geopolitical tensions are showing signs of easing. Ignacio Mieres, Head of Research at XTB, indicated that the impact of conflicts has lessened, despite continued dialogue between the United States and Israel.
The market is anticipating a new round of talks this Thursday. However, Mieres warned that the nuclear program remains the primary point of friction in the negotiations, maintaining a margin of uncertainty in global markets.
