Chile’s Peso Weakens On Quarter-End Dollar Demand As IPSA Closes Below 9,000

Chile’s peso lost ground Monday despite a softer U.S. dollar globally, with quarter-end flows driving the USD/CLP pair higher into the close.

The exchange rate settled near 966 after dipping to 957 earlier in the day, as pension funds and corporates increased dollar buying for hedging and portfolio rebalancing.

The U.S. Dollar Index, meanwhile, slipped under 98 on concerns over a potential U.S. government shutdown and softer U.S. yields. Copper prices provided an early tailwind for the peso, rallying on supply risks and expectations of tighter inventories.

But these fundamentals were overshadowed by local demand for dollars, illustrating how quarter-end positioning can outweigh broader macro forces.

Santiago’s equity market also paused. The S&P IPSA fell 0.3% to 8,996.57, slipping below the psychological 9,000 mark after a closing auction reversal attributed to foreign institutional selling.

Despite the dip, the index remains close to its record highs set earlier this year. Technical signals show a mixed picture. On the four-hour chart, USD/CLP momentum has turned constructive, with MACD rising above zero and RSI climbing into the mid-60s.

Price action sits near the upper Bollinger band, suggesting scope for a push toward 970–975. The daily chart, however, still frames the market in a 955–980 range, keeping traders cautious.

For the IPSA, the four-hour RSI around 53 and fading MACD suggest consolidation, with support at 8,900 and resistance at 9,050.

Top IPSA Winners (Monday close)

• SQM-B +2.4% (lifted by firm lithium prices)
• Parque Arauco +1.9% (retail and REIT strength)
• Cencosud +1.5% (solid retail demand)
• Banco de Chile +1.3% (financial sector support)
• Vapores +1.1% (shipping resilience)

Top IPSA Losers (Monday close)

• ILC −5.2% (steepest drop of the day)
• Entel −3.1% (pressured by competition concerns)
• Concha y Toro −2.3% (exporter weakness)
• Enel Américas −2.2% (heavy volume on buyback)
• Latam Airlines −0.4% (index rebalancing flow)

The day underscored the clash between fundamentals and flows. A weaker dollar and higher copper normally support the peso, but end-of-quarter positioning shifted the balance.

Traders now look to whether today’s flows ease and if USD/CLP can decisively break 970, or instead retreat toward the 955 support zone, while the IPSA waits for fresh momentum to reclaim higher ground.