Chilean Peso Weakens Against Dollar as Copper Prices Falter

On May 15, 2025, at 09:06 AM CEST, TradingView data shows the Chilean Peso (CLP) trading at 934.67 per US Dollar, down 0.10% from the prior close.

This daily report focuses on the last 24 hours, capturing the currency’s struggle against a backdrop of commodity pressures and technical shifts. The USD/CLP pair’s movements reveal a story of economic vulnerability and market uncertainty.

Yesterday, May 14, closed with the USD/CLP at 935.60, but the pair saw volatility, peaking at 947 earlier in the day. This rise likely stemmed from falling copper prices, critical for Chile as the world’s top producer.

By the morning of May 15, the price eased to 934.67, reflecting a slight pullback as global risk sentiment stabilized. The daily candlestick shows a small red body, indicating selling pressure after the recent uptrend.

Fundamentals paint a challenging picture for the CLP. Chile’s economy heavily depends on copper, and a dip in prices, possibly to $4.30 per pound, weakens the peso.

Chilean Peso Under Pressure Amid Rate Cut Prospects

US trade policies, with ongoing tariff adjustments, fuel global inflation fears, dimming prospects for Federal Reserve rate cuts in 2025. Chile’s central bank faces constraints with foreign exchange reserves at 14% of GDP, limiting its ability to prop up the CLP.

Inflation at 3.5% may push the bank toward rate cuts, further pressuring the currency.
The daily chart highlights a bearish technical setup. The price sits below the 50-day Simple Moving Average at 940, signaling a downtrend, while the 200-day SMA near 930 offers support.

The Relative Strength Index, likely around 40 on a 14-period setting, nears oversold territory, hinting at a potential bounce. Bollinger Bands, using a 20-day SMA, show the price near the lower band, suggesting low volatility and consolidation.

Volume spiked to 1 billion CLP during the recent rally, but it tapered off as the price retreated. Support holds at 930, with resistance at 940 and a key level at 950.

A Fibonacci retracement from the high of 968.35 to the low of 918.50 places the 50% level at 943.43, aligning with resistance. The Moving Average Convergence Divergence likely shows a bearish crossover, reflecting fading upward momentum.

Market watchers focus on upcoming US data, like the Producer Price Index, which could bolster the US Dollar if inflation rises. Chile’s growth, estimated at 2% for 2025, provides some stability, but copper price swings and trade tensions keep the CLP at risk of further declines.

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This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief