Chile: The dollar drops to $910 at market opening.
The dollar’s price in Chile started Friday’s session on a downward trend, falling to $910 after the release of the Federal Reserve’s “favorite inflation index” in the United States, which came in line with analysts’ expectations.
The greenback dropped by $3.7 to $909.98 at the opening of the session, according to most quotations. Internationally, the dollar index, which compares the U.S. currency against a basket of global currencies, remained flat. Meanwhile, copper prices were rising in international markets, contributing to the dollar’s decline locally. Copper futures on the Comex exchange were up 0.73% to $4.25 per pound.
Specifically, the PCE index (Personal Consumption Expenditures), which is considered the key determinant in the Fed’s monetary policy, was released this morning. The index and the core measurement showed a monthly increase of 0.2%, in line with projections. The core PCE registered a 12-month rate of 2.6%, slightly lower than the forecasts.
Market attention was also drawn to changes in consumer personal spending, a key indicator of economic activity. In real terms, personal spending advanced by 0.4%, slightly above market expectations of 0.3%.
If inflation (PCE) continues to show signs of weakening and the dollar index maintains the weakness observed in recent months, we could see the dollar approaching $900 once again.
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