US dollar falls to 965.80 Chilean pesos on Tuesday

The US dollar fell 6.70 Chilean pesos on Tuesday morning compared with Monday's close on the Bolsa Electrónica de Chile, trading at CLP 965.80 per unit near its session low of CLP 963.80. If sustained, this marks two consecutive falling sessions, accumulating a drop of CLP 26.59 after Monday registered its largest single-day fall in over a year.

The drop follows a prior stretch of five consecutive rising sessions where the dollar added CLP 31.85, as well as an eight-week streak of gains through last Friday that added CLP 79.80. Ignacio Mieres, Head of Research at XTB, noted that the Chilean peso is showing greater strength supported by a positive international environment for emerging market currencies.

Externally, the dollar index dropped 0.24% to 101.8 points against a basket of six currencies, while the euro gained ground following Monday's losses. Lucas Santillán, market analyst at Capitaria, stated that recent US labor data sharply reduced expectations of further Federal Reserve interest rate hikes. Meanwhile, crude oil prices fell below 100 dollars per barrel amid crude reserve releases and easing market concerns regarding Middle East conflict.

Copper prices also supported the local currency, rising 0.52% on the London Metal Exchange to 6.57 dollars per pound, marking a third consecutive day of gains.