Chilean peso faces challenges amid global and domestic uncertainty – London Business News | Londonlovesbusiness.com

The Chilean peso continues to show some volatility against the dollar. The peso could find some resistance as the dollar rebounds after its decline on Friday and Monday.

In the short term, the dollar could continue to regain ground as monetary policy expectations stabilise.

However, in the longer term, the U.S. currency could continue to lose value as interest rate cuts materialise.

The peso also reacted somewhat to Chilean trade data. Chile’s trade surplus narrowed in July from June, as imports increased faster than exports, and has been declining since the beginning of the year. This trend could weigh on the currency.

Falling copper prices could continue to be a negative factor for the Chilean peso. Copper has recorded a sharp decline since mid-May, although it remained above its prices during the second half of last year. The commodity could continue to decline due to the global economic slowdown, putting the peso at risk.

The peso could react to the release of inflation data, as traders monitor its impact on monetary policy expectations