Dollar Slides, Chilean Peso Firms As IPSA Rally Catches Its Breath

Key Points

1. The dollar’s post-Fed slide is easing pressure on Chile’s peso, now trading near 923 per dollar.
2. Santiago’s IPSA index is pausing just below record highs after one of the strongest rallies among major equity markets.
3. Retail and resource stocks dominate the list of five top winners and five notable laggards in the latest move.

The latest shock for Chilean assets came from Washington, where the U.S. Federal Reserve delivered a third straight quarter-point rate cut and signalled it is in no hurry to stop.

Investors quickly priced in more easing for 2026, U.S. yields fell and the dollar index slipped toward 98.7, its weakest level in weeks.

For Chile, that softer dollar combines with still-buoyant copper prices to support the peso. In early Thursday trading the dollar changes hands around 923 pesos, only slightly above this week’s lows.

On the weekly chart USD/CLP remains in a clear downtrend from the spike above 1,000 earlier in the year, with lower highs and lower lows.

Daily candles are pinned near the lower Bollinger band, while the four-hour chart shows MACD turning up and RSI bouncing from oversold territory, hinting at a short-term consolidation or modest dollar rebound rather than a full trend reversal.

Behind the charts sit fundamentals that conservative investors tend to like. Chile still offers positive real rates, and the central bank’s 4.75 percent policy rate is backed by an explicitly orthodox approach to inflation.

Copper prices remain close to record highs even as recent production and export data look softer, preserving hard-currency support for the peso but reminding markets that supply issues are not solved.

Equities tell a similar story of strength with fatigue. The S&P CLX IPSA sits near 10,170 points after a string of record closes, with daily and weekly RSI readings in overbought territory.

Among the most recent winners of the rally are CMPC, Quiñenco, Cencosud, Falabella and SQM-B, all boosted by renewed foreign interest in consumption, infrastructure and resources.

On the losing side, Ripley, Parque Arauco, Banco Santander Chile, Enel Américas and again Falabella have seen sharper pullbacks as valuations stretch and political noise periodically tests confidence.

For now, Chile’s mix of hard-currency earnings, market-friendly policy and a weaker global dollar keeps both peso and equities better positioned than many of their regional peers.

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