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Chile's Peso And Stocks Signal A Market That Trusts Discipline Again
(MENAFN- The Rio Times) Key Points
The peso trades near the strong end of its 2025 range despite a firm global dollar.
The IPSA sits at record highs after a copper rally and more market-friendly politics.
Foreign investors add exposure while local elites still hedge abroad, keeping the rally disciplined.
The Chilean peso entered Tuesday's session around 924 to 925 per dollar, close to its strongest levels of the year and far from the 950 to 1,000 band seen earlier in 2025.
The move comes even though the US Dollar Index is still near 99 and copper trades around 5.3 dollars a pound. Charts show a dollar that has been on the defensive for months.
On weekly and daily frames, USD/CLP has slid since January, now near the lower Bollinger band with RSI in the mid-30s.
The four-hour chart shows a stair-step decline capped by a falling 200-period average, with momentum negative but fading as support appears between 916 and 920.
Behind that sit fundamentals that reward orthodoxy. The central bank keeps the policy rate at 4.75 percent, inflation is back near target and growth is expected around 2 to 3 percent.
A right-tilting electoral map has cooled talk of radical constitutional rewrites and eased pressure for heavier regulation, giving businesses clearer rules while parts of the left complain about“neoliberal inertia”.
Foreign direct investment remains solid, though wealthy Chileans still move money abroad as an insurance policy. Equities amplify the message.
The S&P IPSA closed its latest session at 10,222.61 points, up 0.42 percent and logging another record. Market data show three notable winners on the day - SQM-B up 2.67 percent, GASCO 2.51 percent and CENCOMALLS 2.46 percent - tied to domestic demand or the copper story.
On the losing side, MOLLER fell 4.18 percent, PASUR 3.20 percent, COLBUN 2.04 percent, Las Condes 1.98 percent and SOCOVESA 1.97 percent, a mix of construction, utilities and real-estate names.
For now the rally rests on firm copper, a steady dollar and a political climate that looks more pragmatic than ideological. Overbought technicals warn that any shock could spark profit-taking, but the market verdict on Chile's policy mix is clear.
The peso trades near the strong end of its 2025 range despite a firm global dollar.
The IPSA sits at record highs after a copper rally and more market-friendly politics.
Foreign investors add exposure while local elites still hedge abroad, keeping the rally disciplined.
The Chilean peso entered Tuesday's session around 924 to 925 per dollar, close to its strongest levels of the year and far from the 950 to 1,000 band seen earlier in 2025.
The move comes even though the US Dollar Index is still near 99 and copper trades around 5.3 dollars a pound. Charts show a dollar that has been on the defensive for months.
On weekly and daily frames, USD/CLP has slid since January, now near the lower Bollinger band with RSI in the mid-30s.
The four-hour chart shows a stair-step decline capped by a falling 200-period average, with momentum negative but fading as support appears between 916 and 920.
Behind that sit fundamentals that reward orthodoxy. The central bank keeps the policy rate at 4.75 percent, inflation is back near target and growth is expected around 2 to 3 percent.
A right-tilting electoral map has cooled talk of radical constitutional rewrites and eased pressure for heavier regulation, giving businesses clearer rules while parts of the left complain about“neoliberal inertia”.
Foreign direct investment remains solid, though wealthy Chileans still move money abroad as an insurance policy. Equities amplify the message.
The S&P IPSA closed its latest session at 10,222.61 points, up 0.42 percent and logging another record. Market data show three notable winners on the day - SQM-B up 2.67 percent, GASCO 2.51 percent and CENCOMALLS 2.46 percent - tied to domestic demand or the copper story.
On the losing side, MOLLER fell 4.18 percent, PASUR 3.20 percent, COLBUN 2.04 percent, Las Condes 1.98 percent and SOCOVESA 1.97 percent, a mix of construction, utilities and real-estate names.
For now the rally rests on firm copper, a steady dollar and a political climate that looks more pragmatic than ideological. Overbought technicals warn that any shock could spark profit-taking, but the market verdict on Chile's policy mix is clear.
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