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The price of the dollar closed with a strong rise on Monday, completing three consecutive sessions of advances, in line with the increase in the currency globally and the severe decline in the prices of copper, the country’s main export.
The greenback rose $ 10.3 to a selling point of $ 721.32, marking its highest level since December 22.
In this way, the exchange rate accumulates an increase of $ 22.7 in three days, so that so far this year the increase amounts to $ 8.81.
“Bullish session for the dollar that is explained by a sharp fall in the price of copper of over 3%, due to a resurgence, for now moderate, of Covid-19 in China, which if extended, could bring new restrictions on the economy of that country, ”said Carlos Quezada, Libertex Senior Trader.
Indeed, three-month futures of the metal fell 3.12% to US $ 3.5590 a pound on the London Metal Exchange, while the spot price closed with a decrease of 2.39% to US $ 3.6067 a pound .
For his part The dollar index, which measures the currency against a basket of six liquid currencies, including the euro, rose 0.43% to 90.48 points.
“Expectations of an important fiscal stimulus in the United States have led to increases in long-term interest rates and an appreciation of the dollar,” said Bci Estudios.
In addition, the appreciation of the dollar at a global level contributes to the fall of copper, since it increases its cost, de-identifying the demand.
In the first operations of the local interbank market, the exchange rate is at $ 714.79, which represents an increase of 0.57% in relation to the closing of Friday.
This is the third consecutive advance and its highest level of the year.
He dollar index which measures the currency against a basket of six liquid currencies, including the euro, rises 0.40% and recovers 90 points.
“The dollar worldwide is showing a certain appreciation in recent days, which clearly supports the advance at the local level, while copper corrects after reaching the latest highs, which coincide with levels not seen since 2013,” said Ricardo Bustamante , Head of Trading Studies at Capitaria.
“Currently we continue to have an important technical floor at $ 700 and, if the increases continue, we should aim for $ 720 in the very short term and $ 730 as a second forecast,” said Benjamín Castillo, markets strategist at XTB Latam.
The copper futures contracts, in effect, experience a sharp decline of 1.48% on the London Metal Exchange, at US $ 3,619 per pound.
According to Reuters, the dollar appreciated globally as higher yields on US Treasuries and expectations of more fiscal stimulus pushed the greenback against its rivals, while the euro hit a two-week low.
US President-elect Joe Biden, who will take office on January 20 and benefit from Democrats’ control of both houses of Congress, has promised “billions” of extra spending on pandemic relief.
