Dollar Strength Persists as Chilean Peso Tests 930 Resistance
The Chilean peso (CLP) is trading at 929.37 per USD as of this morning (March 24, 2025), continuing the weakening trend observed in recent sessions.
This represents a slight uptick from Sunday’s closing rate of 927.73, as the dollar maintains its strength against most emerging market currencies. Yesterday (March 23, 2025), the peso closed at a rate of 927.73 per USD, showing moderate stability after Friday’s session.
Friday saw the CLP continuing its depreciation, with the USD/CLP pair rising 0.09% to 928.83 from Thursday’s level. This represented a continuation of the significant weakening observed since Thursday, when the peso breached the psychologically important 920 barrier.
The peso had previously demonstrated considerable strength on Thursday (March 20), trading below 920 CLP per USD for the second consecutive day before reversing course.
Friday’s 1.11% depreciation from Thursday’s closing rate of 918.27 marked a decisive break above the 920 level that had served as resistance-turned-support.
Overnight Developments
In overnight trading, moderate dollar buying pressure continued as Asian markets processed the latest Federal Reserve commentary. The slight increase from Sunday’s close to this morning’s rate of 929.37 reflects ongoing caution among traders as they position ahead of today’s economic releases.
Factors Driving Current Market Conditions
Several key factors are influencing the peso’s performance:
Federal Reserve Impact: “The Federal Reserve’s hawkish stance late last week continues to reverberate through emerging markets, with the Chilean peso feeling pressure as investors adjust positions accordingly,” notes Miguel Sánchez, FX strategist at Banco Santander Chile.
ETF Flows: Foreign exchange ETFs tracking Chilean assets reported outflows of approximately $12 million during overnight trading, extending the negative trend that began last week when $18.5 million exited these funds prior to Friday’s session.
Copper Prices: As the world’s largest copper producer, Chile’s currency remains sensitive to the industrial metal’s price movements. Copper has stabilized after showing weakness in Asian trading late last week, providing limited support for the peso.
Technical Factors: “The breach of the 928-930 range this morning signals potential for further testing of resistance levels toward 935,” explains Juan Martínez, FX strategist at Banco de Chile.
Live Market IntelligenceChile — Live Market Board
Rio Times · Live Market Intelligence
Chile — Live Market Board
-0.21%
186,595.60
+0.74%
63,536.96
+0.25%
11,357.82
-0.21%
2,998,956
+0.00%
2,565.55
+0.68%
59,344.04
+0.31%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IPSA | 11,357.82 | -0.21% | — | 11,381.18 | 11,210 | 10,984 | 1,513,213,483 |
| USD/CLP | 913.98 | +0.04% | -5.67% | 913.65 | 915.11 | 906.68 | — |
| COPPER | 6.61 | +0.03% | +46.70% | 6.61 | 6.71 | 6.61 | 39,543 |
| SQM-B | 65,305 | -0.84% | +49.03% | 65,860 | 66,949 | 64,978 | 76,539 |
| COPEC | 5,964 | -1.09% | -11.70% | 6,030 | 6,100 | 5,960 | 634,331 |
| BSANTANDER | 78.37 | -2.28% | +35.94% | 80.20 | 81.69 | 78.34 | 36,288,711 |
| FALABELLA | 6,334 | -1.48% | +23.28% | 6,429 | 6,450 | 6,300 | 26,085,814 |
| ENELAM | 87.09 | +0.10% | -10.13% | 87.00 | 87.40 | 86.50 | 13,106,417 |
| CENCOSUD | 1,946 | -2.19% | -35.30% | 1,990 | 2,010 | 1,945 | 966,528 |
| CMPC | 1,020 | -1.96% | -29.10% | 1,040 | 1,050 | 1,015 | 3,526,677 |
| BANCO CHILE | 184.96 | -1.01% | +32.87% | 186.85 | 189.99 | 184.33 | 18,101,240 |
| LATAM AIR | 24.08 | -1.11% | +16.61% | 24.35 | 24.59 | 23.88 | 573,612,753 |
| SOUTHERN COPPER | 193.97 | -0.26% | +104.01% | 194.48 | 199.36 | 192.59 | 367,102 |
Trading Volumes and Market Activity
This morning’s session has started with moderate trading volumes, with approximately $180 million exchanged in the first hour – tracking slightly below Friday’s heightened activity when $380 million changed hands in the first two hours (20% above the March daily average).
Gov Capital’s forecast model suggests the USD/CLP could reach 921.50 by the end of today’s session, indicating some potential for peso recovery, though current market sentiment appears to favor continued dollar strength.
Technical Analysis
From a technical perspective, the USD/CLP pair is now trading in the middle of its established March range of 923-945. The 14-day relative strength index (RSI) has increased to 54.6 from Friday’s 53.8, showing slightly increased bullish momentum for the dollar against the peso.
“The momentum indicators have shifted further into neutral territory on daily charts,” notes Patricia Núñez, senior technical analyst at Santiago Capital. “With Monday’s movement, we’re seeing the consolidation pattern that was anticipated, with immediate resistance at 932 and support at 925.”
Market Outlook
Trading Economics forecasts the Chilean peso to trade at 930.62 by the end of this quarter, suggesting limited additional weakening from current levels. Market participants remain focused on upcoming Chilean inflation data and central bank commentary expected later this week.
For today’s session, traders expect the USD/CLP to trade within the 927-933 range, with potential for increased volatility as North American markets open and process the latest economic signals.
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