Chile’s Peso Slides Further Against Strengthening U.S. Dollar Amid Copper Uncertainty

Data provided by TradingView charts reveals the Chilean peso weakened overnight, trading at approximately 967.22 pesos per U.S. dollar as of the morning of July 29, 2025.

This marked a notable climb from yesterday’s close of around 959.0 pesos. The upward movement of the USD/CLP pair coincides with broader trends affecting Latin American currencies.

This includes the Colombian peso, Mexican peso, and Brazilian real. Chile’s recent peso weakness stems primarily from fluctuations in copper markets, triggered by new U.S. tariff measures.

Chile’s economy, deeply reliant on copper exports, faces significant headwinds due to the recent 50% tariff on copper imports announced by the U.S., effective August 1.

Though Chilean copper exports remained steady recently, uncertainty about future export levels added pressure on the peso. Technical indicators from TradingView’s daily chart underline the ongoing strength of the U.S. dollar against the peso.

The Moving Average Convergence Divergence (MACD) is positive, confirming bullish momentum. The Relative Strength Index (RSI) at 62.49 indicates strong but not yet overbought conditions, suggesting potential for further upward moves.

Meanwhile, USD/CLP continues trading above key moving averages, including the critical 50- and 200-day Simple Moving Averages (SMA). The 4-hour chart further reinforces this bullish trend.

Bollinger Bands expanded, pointing to increased volatility and continued upward momentum. RSI, though slightly higher at 65.34, does not indicate an immediate reversal.

The Global Liquidity Index NDQ (yellow line), signaling liquidity conditions, aligns with recent peso declines, reflecting less favorable conditions for emerging markets.

Fundamentally, the U.S. dollar index (DXY) gained momentum, reaching 98.71, driven by the favorable U.S.-European Union trade agreement that underscored U.S. economic strength.

This reinforced global confidence in the U.S. economy, encouraging investment inflows into dollar-denominated assets. Chile’s government, responding strategically, seeks negotiations with U.S. authorities to include copper in broader trade discussions.

Finance Minister Mario Marcel emphasized this approach, aiming for tariff relief. The immediate future hinges on detailed tariff implementation, U.S. economic data releases, and official Chilean responses, each of which could significantly impact the USD/CLP trajectory.