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Copper is also helping to strengthen the Chilean peso in anticipation of a Biden win.
The elections in the United States started and with it the Chilean peso seizes the moment. The North American currency ended the day falling sharply in the local market, so it was quoted at $ 755.10, falling more than $ 13 from yesterday’s close.
With this number, the exchange rate reached minimum values since January 2.
The Chilean peso followed the path of practically all emerging currencies, which also appreciated against the dollar. In fact, the North American currency has its worst day in months with the Dollar Index – a reference to compare the dollar with other world currencies – loses 0.86%, since the presidential polls give the winnerDemocrat Joe Biden.
Along these lines, the XTB Latam Market analyst, Francisco Román, states that “if the polls are correct and Biden wins by a landslide, with Democrats securing both houses of Congress, it would bolster prospects for rapid and large-scale fiscal stimulus. “
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Copper is also helping to strengthen the Chilean peso. According to data from the Chilean Copper Commission (Cochilco), the country’s main export product rose 1.18% in London to US $ 3.08 a pound.
And it is that in the market they indicate that if the Democrats win, commodities would be one of the great winners of the day, since tensions with China could lower decibels, helping a better tariff climate between the two, enhancing and strengthening the global economy.
However, there are also local factors that are making the dollar fall. On the one hand, a new recommendation emerged to change the pension fund, opting for the most conservative, which It forces the AFPs to liquidate positions in foreign papers, generating downward pressure on the exchange rate.
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