Chilean Peso Gains Ground as IPSA Index Scales Historic Peak

The Chilean peso edged higher against the U.S. dollar early Thursday, trading at 940.45 pesos per dollar, down from Wednesday’s close of 942.32, buoyed by resilient commodity exports and signals of U.S. monetary easing.

Meanwhile, Chile’s benchmark S&P IPSA index notched a fresh all-time high of 9,326.50 on October 29, surging 1.02% and extending its winning streak to five sessions amid global risk appetite.

The peso’s appreciation capped a 0.17% decline in the USD/CLP pair the prior day, which ranged between 935.38 and 945.29.

Central Bank of Chile‘s decision to hold its policy rate at 4.75%—citing controlled inflation despite economic slowdowns—contrasted with dovish tones from Federal Reserve Chair Jerome Powell, diminishing the dollar’s allure.

Rising copper prices, a linchpin of Chile’s export economy, further fortified the currency, offsetting concerns over mining disruptions and a projected widening current account deficit.

The U.S. Dollar Index (DXY) dipped 0.07% to 99.0861 overnight, reflecting broader weakness after a 3.5% monthly rally stalled near 99.40 resistance.

This dynamic favored emerging market assets, with ETF inflows into Chile-focused funds nearing $1 billion in early October, while U.S. dollar vehicles saw $6.5 billion in outflows.

Fundamentals underscore Chile’s steady footing: OECD projections highlight trend-level growth supported by macroeconomic policies, though political uncertainties and China‘s slowdown pose headwinds.

Technically, USD/CLP’s 4-hour chart shows bearish consolidation near 940 support within a descending channel, with daily indicators below key EMAs signaling potential further peso strength toward 930 if DXY breaches 99.

The IPSA, conversely, maintains bullish alignment across timeframes, with higher lows and positive MACD pointing to 9,400 upside.

Among IPSA constituents on October 29, top winners included Sociedad Química y Minera de Chile (+3.55%), Empresas CMPC (+3.28%), Embotelladora Andina (+3.00%), Inversiones Aguas Metropolitanas (+2.12%), and CAP (+1.97%).

Laggards were Sonda (-2.21%), Compañía Cervecerías Unidas (-1.15%), Viña Concha y Toro (-0.86%), LATAM Airlines Group (-0.61%), and Compañía Sud Americana de Vapores (-0.43%).

Looking ahead, traders eye U.S. payrolls data for Fed cues, with USD/CLP likely range-bound at 938-945 and IPSA poised for extension barring risk-off shocks. Chile’s markets exemplify emerging resilience in a softening dollar era.