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Chilean Peso Surges To Post-Fed Highs As Santiago Stocks Hit Fresh Records
(MENAFN- The Rio Times) Key Points
Dollar slides to two-month lows after the Fed's third straight rate cut, sending USD/CLP down to the 914 area and briefly to 913.9.
Santiago's IPSA jumps 1.9% to a new record above 10,300, led by construction, pulp and retail names against a backdrop of record copper prices.
Markets are clearly positioning for a pro-growth, pro-investment presidency in Sunday's run-off, while punishing more interventionist stories across the region.
The latest move in Chilean assets began on Thursday, when the U.S. Federal Reserve delivered a third consecutive 25-basis-point cut, taking its target range to 3.50–3.75% and signalling a pause.
The decision knocked the Dollar Index down toward 98.2–98.5, a two-month low, as investors rotated back into higher-yielding emerging-market currencies.
Overnight, that softer dollar tone held, and by early Friday USD/CLP was trading around 914 after briefly touching 913.9, almost 10 pesos below Wednesday's close.
Local drivers have amplified the global move. Copper futures climbed to fresh record territory above 5.3 dollars a pound, reinforcing Chile's external accounts and giving the peso an extra tail-wind.
Strategists at Bci argue that the currency is simply converging faster toward a fair-value zone near 900, helped by booming copper and easier U.S. policy. BBVA's Latam FX team still calls the peso its preferred long in the region.
On the charts, the 4-hour USD/CLP candles sit well below the Ichimoku cloud and all key moving averages, with MACD firmly negative and RSI hovering in mildly oversold territory – classic momentum rather than panic.
The daily chart shows a clean break below the 930 floor that held for much of 2025, while weekly indicators suggest scope for a test of the 900 handle if the external backdrop cooperates.
Equities are telling the same story. The S&P IPSA jumped 1.9% on Thursday to 10,362.9, its first close above 10,300 and roughly 54% higher year-to-date in pesos.
Top five winners inside the index were Salfacorp (+4.8%), CMPC (+3.3%), Cenco Malls (+2.9%), SQM-B (+2.7%) and Santander (+2.5%), names that all benefit from construction, commodities or credit growth.
The wider Santiago board still had losers – including Pasur, Colbún, Las Condes, Socovesa and Pehuenche – but they were modest, idiosyncratic declines rather than a macro signal.
Behind the numbers, investors are clearly pricing a Chil that leans toward rule-of-law, investment-friendly reforms under a likely conservative presidency, and away from heavier taxation and state intervention.
For now, that preference is being expressed in a stronger currency, record-high stocks and a dollar bulls' line in the sand around 98 on the DXY.
Dollar slides to two-month lows after the Fed's third straight rate cut, sending USD/CLP down to the 914 area and briefly to 913.9.
Santiago's IPSA jumps 1.9% to a new record above 10,300, led by construction, pulp and retail names against a backdrop of record copper prices.
Markets are clearly positioning for a pro-growth, pro-investment presidency in Sunday's run-off, while punishing more interventionist stories across the region.
The latest move in Chilean assets began on Thursday, when the U.S. Federal Reserve delivered a third consecutive 25-basis-point cut, taking its target range to 3.50–3.75% and signalling a pause.
The decision knocked the Dollar Index down toward 98.2–98.5, a two-month low, as investors rotated back into higher-yielding emerging-market currencies.
Overnight, that softer dollar tone held, and by early Friday USD/CLP was trading around 914 after briefly touching 913.9, almost 10 pesos below Wednesday's close.
Local drivers have amplified the global move. Copper futures climbed to fresh record territory above 5.3 dollars a pound, reinforcing Chile's external accounts and giving the peso an extra tail-wind.
Strategists at Bci argue that the currency is simply converging faster toward a fair-value zone near 900, helped by booming copper and easier U.S. policy. BBVA's Latam FX team still calls the peso its preferred long in the region.
On the charts, the 4-hour USD/CLP candles sit well below the Ichimoku cloud and all key moving averages, with MACD firmly negative and RSI hovering in mildly oversold territory – classic momentum rather than panic.
The daily chart shows a clean break below the 930 floor that held for much of 2025, while weekly indicators suggest scope for a test of the 900 handle if the external backdrop cooperates.
Equities are telling the same story. The S&P IPSA jumped 1.9% on Thursday to 10,362.9, its first close above 10,300 and roughly 54% higher year-to-date in pesos.
Top five winners inside the index were Salfacorp (+4.8%), CMPC (+3.3%), Cenco Malls (+2.9%), SQM-B (+2.7%) and Santander (+2.5%), names that all benefit from construction, commodities or credit growth.
The wider Santiago board still had losers – including Pasur, Colbún, Las Condes, Socovesa and Pehuenche – but they were modest, idiosyncratic declines rather than a macro signal.
Behind the numbers, investors are clearly pricing a Chil that leans toward rule-of-law, investment-friendly reforms under a likely conservative presidency, and away from heavier taxation and state intervention.
For now, that preference is being expressed in a stronger currency, record-high stocks and a dollar bulls' line in the sand around 98 on the DXY.
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