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October 11: Dollar ended sharply lower pending meeting of the Central

dollar closed sharply lower pending meeting of the Central
Thursday, October 11, 2007
Economics and Business Online / Agencies

U.S. currency finished the day with a low of $ 3.30 $ 493.40 to $ 493.70 buyer and seller.

SANTIAGO .- The dollar closed Thursday at new lows against the Chilean peso since 1999, in line with the overall weakness of the U.S. currency in a market expecting the meeting the Central Bank's monetary policy set for this afternoon, traders said.

At the end of the day, the spot exchange rate stood at $ 493.40 $ 493.70 purchase and sale, with a drop of $ 3.30 on yesterday's close.

With these values, the peso rose to its 7.24% cumulative increase against the dollar so far in 2007 and contrasts with the fall of 3.95% that scored at the end of last year.

"The market is waiting to see what will happen this afternoon with the interest rate but independent of it, is a global trend that shows a weakness of the dollar against most currencies, that is, at this time no one wants dollars, "said one trader.

On Thursday afternoon, the Central Bank will have its monthly monetary policy meeting and the market is divided as to the resolution adopted by the agency with respect to the funds rate in the economy , fixed at 5.75%, one percentage point on their U.S. similar.

"The high inflation of recent months a window for a rate hike, but will be a very difficult decision to take because of the sustained fall has been the dollar and putting pressure on the export sector is looking for measures to hold " he said.

Transactions e in the local market rose to U.S. $ 1,140 million, from U.S. $ 997 million traded the previous day. Evolution

currency
On Monday, the peso broke through the 500 per dollar and reached maximum levels in eight years against the currency, which has deepened in the next few days.

Some traders expect the absence of any direct or indirect intervention by the monetary authority, the Chilean currency could trade around $ 487 next week.

The range of variation estimated for the Chilean currency during the day is between $ 493.00 and $ 496.00.

Yesterday The dollar closed the day with his sixth consecutive lower due to overall weakness in the U.S. currency in a market waiting and divided over a possible further increase in local interest rates, dealers said.

At the end of business on Wednesday, the spot exchange rate values \u200b\u200brecorded $ 496.70 $ 497.00 buyer and seller, with a drop of $ 1.20 on Tuesday.