(MENAFN- The Rio Times) Chile's stock market keeps grinding higher while the peso strengthens against the dollar, a pairing that looks counter-intuitive amid fractious politics.

The explanation is straightforward: world-leading copper prices, falling domestic inflation, a steady central bank, and persistent foreign inflows have outweighed headline risk and political theater.

The IPSA extended its autumn rally with banks, miners, utilities, and retail in front. On the day, the five top winners clustered in large-cap copper producers and lithium names tied to export volumes.

Domestic banks benefited from a steeper curve, grid utilities from regulated cash flows, and retailers from real-wage recovery.

Five notable laggards came from small industrials exposed to higher input costs, construction plays still digesting weak permits, telecoms with heavy capex, airlines trimming guidance, and a handful of speculative tech or holding vehicles.



Turnover remained solid and consistent with recent weeks, suggesting demand is broad rather than a short squeeze. In FX, USD/CLP traded around the mid-930s, extending a month-long downtrend on the charts.

A softer dollar index under 100 has removed a key headwind for emerging-market currencies, while Chile 's improving terms of trade and a current-account healing on mining exports add fundamental support.

With inflation back inside the target band and rate cuts proceeding cautiously, real yields remain attractive versus peers, drawing in foreign capital. Technically, the 4-hour USD/CLP still points lower, with first support at 931–932 and resistance at 945–950.



On the daily, the pair sits below the 50, 100, and 200-day averages; a close under 932 opens 925–920, while a rebound above 950 would warn of a short squeeze. The IPSA's daily momentum stays constructive as price rides its short-term moving averages.

Why does the market rise despite politics? Investors are rewarding institutions that still behave predictably: an independent central bank, disciplined disinflation, credible mining contracts, and a corporate sector that trimmed costs early.

Proposals that spook capital tend to stall or get watered down in Congress, while cash from pensions and overseas ETFs continues to find undervalued assets. In short, market discipline and hard-asset economics, not slogans, are steering Chile's rally and a stronger peso.

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