The USD to CLP exchange rate is currently bearish, with expectations for the dollar to weaken in the near term.
Key drivers include:
- The Federal Reserve's anticipated rate cuts by mid-2026, increasing the interest rate differential in favor of the Chilean peso.
- A robust global economy enhancing demand for copper, which is crucial for Chile and supporting the peso.
- Chile's economic growth projections at about 2% for 2025 and 2026, boosting confidence in the CLP.
In the near term, the USD/CLP pair may trade within a more stable range, reflecting recent price movements.
Upside risks could arise from any stronger-than-expected U.S. economic data or a delay in Fed rate cuts. Conversely, the downside risk may come from political uncertainties in Chile regarding new economic policies under President Kast that could impact investor sentiment.