Chile’s Peso Firms as Copper Holds Near Records and IPSA Flirts With 11,000

Key Points

• USD/CLP was near 893.62 while Chile’s official “dólar observado” was set at 895.54.
• The S&P IPSA traded around 10,929, just below 11,000, with momentum readings flashing “overbought.”
• Copper near $6.01/lb remains the anchor, but positioning looks late-cycle on both FX and stocks.

Chile’s peso opened the week firm and Santiago equities held near record highs, as copper strength and a softer U.S. dollar shaped the morning tape.

In early Monday trading, USD/CLP hovered around 893.62, with an indicative quote near 894.97/896.62. The broader dollar backdrop shifted overnight as the dollar index slid toward 99 after reports of a U.S. criminal investigation involving Federal Reserve Chair Jerome Powell.

The move followed a mixed U.S. jobs report on Friday; City Index analyst Fiona Cincotta said it “removes the chances of a rate cut in January,” even as markets still price easing later this year.

Copper continues to carry Chile’s macro story. Around $6.01/lb, the metal has been framed as record territory, helped by supply disruptions, strike risk at a Chilean mine, and tariff-related stockpiling.

“The futures of copper surpassed $6 per pound,” Sura Investments strategist Ariel Nachari said, arguing it supports local activity if sustained.

Inflation data reinforced the idea that price pressures are easing, even if the last mile remains uneven: December CPI fell -0.2% m/m and 2025 inflation ended at 3.5% y/y, with services still sticky.

The charts suggest the peso move is mature, while equities look stretched. USD/CLP RSI sits near 38 on 4-hour and daily views and near 30 on weekly, with support at 890–892 and resistance at 900–902 and 905–906.

The IPSA’s RSI is around 74 on 4-hour, near 76 on daily, and above 80 on weekly—levels that often precede volatility rather than a clean break.

Friday’s session was selective. The IPSA finished near 10,929.15, lifted by Santander (+1.9%) and Falabella (+1.9%).

The day’s top Santiago gainers were Potasios-A (+15.13%), Iansa (+6.35%), Multi X (+5.30%), Aaisa (+5.30%) and Manquehue (+4.63%). The top decliners were ABC (-3.41%), Nortegran (-2.65%), Entel (-1.72%), Cuprum (-1.38%) and Latam (-1.35%).

For overseas positioning, the iShares MSCI Chile ETF (ECH) traded about 314,533 shares, with flows +$8.5m (5 days), -$60m (1 month) and +$99m (3 months).

This is part of The Rio Times’ daily coverage of Chilean markets and Latin American financial news.

For context on regional markets, see Brazil’s Ibovespa for the same session.

Also tracking regional peers: Colombia’s COLCAP closed the same session.

This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error