The dollar fell sharply against the Chilean peso on Wednesday amid international currency weakness after the publication of US inflation data.
At the close of trading on the interbank market, the dollar was quoted at US $ 677.8, a sharp drop of US $ 5.1.
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This movement is explained in large part by the retreat of the US currency in foreign markets. The dollar index – which measures the performance of the currency against six world currencies – weakens 0.37%.
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This, after the publication of US inflation data, which reported a null variation in November.
XTB Latam's market analyst, Carlos Quezada, explains that US macroeconomic data show a core inflation stabilization of more than 2%.
"For the time being, the market is assuming a new increase in December, but by 2019 we would have only 1 or 2 increases, which is depreciating the US internationally." The local exchange rate is combined with the weakness of the dollar, "adds Quezada.
Add to this the increased appetite for risk among investors after renewed optimism in the trade war.
Against this background, emerging currencies are rising sharply and the South African rand leads the list of valuations with an increase of 0.96%. Behind is the real and the Chilean peso with advancements of 0.92% and 0.75%, respectively.
On the opposite lane, the Indian rupee is the only currency that falls against the dollar with depreciation of 0.23%.