The USD to CLP exchange rate has a bearish bias, influenced by recent developments in both economies.
The Federal Reserve's anticipated rate cuts, likely to weaken the USD, are a crucial driver. The Central Bank of Chile's recent rate reduction and strong copper prices, a key export for Chile, also support the CLP. Additionally, Chile is projected to experience consistent economic growth, which could enhance confidence in the peso.
In the near term, trading is expected to range from recent lows to the higher end of the last few months, with USD to CLP fluctuating within established boundaries.
An upside risk could arise if global sentiment improves significantly, boosting demand for the USD. Conversely, a significant turn in copper prices or shifts in new economic policies following Chile’s recent elections could put further downward pressure on the CLP.
