Fynsa
The flow of buying continues to dominate the foreign exchange market, despite sales by both the Central Bank and the Treasury.
Against the backdrop of interest rate cuts by both the Central Bank and the Federal Reserve, it will be particularly important to have clarity on how our currency will move.
Having seen levels of 780 in the first half of the year and with the Central Bank lowering rates ahead of the rest of the economies, we should see the exchange rate converge to the lower end of this year's range.
The expected drop in the price of the dollar to the vicinity of 800 should not occur until next year.
The current outlook points to the worst-case scenario for the Chilean peso, with the local interest rate expected to reach 8% by the end of the year.
It seems fair to ask whether the dollar's upward trend will continue, or whether these are levels at which to close out long positions or perhaps bet on a decline.
