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Saturday, February 4, 2023

The dollar fell below $860 after a constitutional settlement and lower-than-expected inflation data in the United States – World Nation News

Three months after the rejection victory in the referendum on September 4, a sharp drop in the dollar’s value this Tuesday after yesterday, political parties finally sealed the deal that will allow the constituent process to continue and In the United States after knowing lower-than-expected inflation data, which puts pressure on the Federal Reserve for its next interest rate hike.

The US currency fell $12.15 to $856.50.

The agreement reached last night is called “deal for chileconsists of Constitutional Council of 50 seats and 24 experts why A new component enables Process 2.0,

“The agreement with respect to the constitutional route defines the boundaries, basic principles and involvement of experts, which clearly limit uncertainty,” BCI Estudios said in a report.

While this morning in an interview with Radio Duna, the finance minister, Mario Marcel, described the agreement as “very satisfactory” that the political forces agreed upon a component process, because “being a process already clearly defined to proceed, it seems This is something that will help ease the uncertainty for the Chilean economy.”

internationally dollar index, The United States CPI data, which measures the currency’s value against a basket of six liquid currencies including the euro, widened its decline and fell 1.12% to 103,595 points.

“The US CPI was published where the annual data reached 7.1%, well below the 7.3% expected by the market., Core inflation also surprised at 0.2% monthly versus the expected 0.3%. “As the markets reacted very positively, expectations for an interest rate hike have also eased, which stands at 4.75% – 5.00% for 2023,” said Pablo Mundaca, senior market analyst at XTB LATAM.

Investors are now awaiting the outcome of the Federal Reserve’s policy meeting, which will announce its decision on interest rates tomorrow.

The downtrend in the exchange rate locally was also supported by a rise in the country’s main export copper, which also extended its gains due to favorable CPI data in the United States.

Three-month futures for the metal were up 1.09% at $3.84 per pound on the London Metal Exchange.

Also, in China, the largest consumer of metals in the world, they continue to ease zero Covid measures, in fact, in Hong Kong they are going to release all restrictions from this Wednesday.

World Nation News Desk
World Nation News Deskhttps://worldnationnews.com/
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