According to Powell, he was moderating expectations of rising interest rates, the exchange rate lost 6 dollars a day.
The President of the United States Federal Reserve yesterday spoke about a speech that undermined expectations of rising market rates and promptly led the dollar to the global level. But, as it happened yesterday after the closing of the currency market, the local currency exchange rate has reacted today.
After the end of the day The dollar in Chile was $ 669.5, which means a sharp drop of $ 6 compared to yesterday's price.
According to market agents, the comments by yesterday's Fed leader Jerome Powell are key. At a time when investors were uncertain, the institution stated that the interest rate was close to its neutral level, suggesting that the central United States could stop the monetary normalization process.
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This today created a new currency boom, which is currently increasing against the dollar, with a few exceptions.
It should be recalled that this asset class was in trouble in 2018 due to the fact that in the first months of the year, the Fed appeared to be more aggressive in terms of schedule than in 2017.
In turn, the global gold price – measured by the dollar index contrasting with the basket of currencies – is virtually unchanged since the fall of yesteryear with the words of Powell.
Of course, we expect greater volatility in the short term, given that investors are still waiting for new developments in the trade war between China and the United States. "Before the G-20 meeting, the market appears cautious, especially after Donald Trump said that there are still a lot of questions in the tariff struggle with China," said Ricardo Bustamante, Capitaria's marketing research director.
In this position, the analyst claims that after being held in Buenos Aires on Saturday, there could be greater clarity about the outlook for the foreign exchange market.