After Powell's words expected to moderate rate expectations, he lost the $ 6 exchange rate during the day.
The president of the US Federal Reserve gave a speech that moderated the expectations of an increase in market rates and immediately deducted the global dollar. But as this happened yesterday after the closure of the exchange market, the local exchange rate responded today.
At the end of the day's operations, The dollar in Chile was $ 669.5, which represents a sharp reduction of $ 6 compared to yesterday's price.
The key, according to market agents, in the comments made yesterday by the head of the Fed, Jerome Powell. In a speech that the investors received in suspense, the authority said that the interest rate was close to its neutral level, which gave light that the US center could take a break in the process of financial normality.
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This creates today's prosperity in the emerging money, which is currently rising in a block against the dollar, with few exceptions.
It should be remembered that this asset class had been in trouble during 2018 because the Fed showed signs of a more aggressive rate schedule during the first few months of the year than what was predicted in 2017.
On its behalf, the global price of the green – per Dollar Index, which is a contrast to a currency basket – operates almost unchanged after it fell yesterday with the words of Powell.
Of course, more instability is expected in the short term, given that investors are still waiting for new developments in the trade war between China and the US. "The market shows a warning before the G-20 meeting starts, especially after Donald Trump says that he had a great deal after he was solved in the fight tariff with China, "said Ricardo Bustamante, head of trading studies in Capitaria.
In this line, the analyst argues that, after the case, which is held on Saturday in Buenos Aires, there may be more clarity about the forecasts for the foreign exchange market.