The USD to CLP exchange rate is currently range-bound.
Key drivers include:
- The Federal Reserve's policy adjustments are expected, with potentially three rate cuts by mid-2026, which could weaken the dollar.
- Chile's Central Bank recently cut its interest rate to 4.5%, potentially supporting the peso as economic conditions improve.
- Rising copper prices are likely to boost Chile's export revenues and GDP growth, forecasted around 2% for the coming years.
In the near term, the trading range for USD to CLP seems stable following 90-day lows, likely to fluctuate within a defined band as policymakers respond to economic signals.
An upside risk for the USD could stem from stronger-than-expected economic data prompting the Fed to reconsider rate cuts. Conversely, a downside risk might arise from a continued push in ASEAN's move away from the USD, affecting overall demand.
