The Chilean peso started the week with a solid appreciation of 0.95%, positioning itself as one of the best-performing currencies of the session and reinforcing a positive trajectory that has been consolidating throughout 2025, accumulating a gain of over 7% against the U.S. dollar so far.
Two key factors explain this strong performance of the Chilean peso. First, the broad weakness of the U.S. dollar has facilitated a recovery in CLP. Second, and perhaps equally important, is the exceptional performance of copper, which has registered an increase of nearly 22% so far this year, providing crucial support to the Chilean currency, given the local economy's high dependence on the export of this metal.
In particular, the recent strength of the Chilean peso received an additional boost following the release of a series of positive economic indicators from China, Chile's largest trading partner. At the start of this week, China reported a moderation in the decline of new home prices, marking the slowest drop in the last eight months. Additionally, industrial production exceeded expectations, growing 5.9% year-over-year in January-February, with key sectors such as computing, communication, and automobiles leading the expansion. Another factor positively received by investors is that retail sales accelerated to 4.0%.
Beyond these favorable results, new government measures have emerged to stimulate domestic consumption, including subsidies for families and specific actions to strengthen Chinese consumers. This measure, in my view, is extremely relevant, especially in an environment where China is seeking to diversify its economy, which has experienced development constraints through the real estate sector and faces uncertainty in external demand due to trade tensions with the West. However, if Japan has taught us anything, it is that this process of changing consumer habits can be more complex than initially expected.
Overall, this data is particularly relevant considering the current trade tensions between the United States and China. In fact, if the Chinese economy manages to remain stable despite U.S. trade aggression, this would most likely continue to benefit the Chilean peso.
From an operational perspective, the market is focusing on the 900 Chilean pesos per dollar level, a key level where the currency faced resistance throughout 2024. A confirmation of this movement could open room for further peso appreciation in the short term.
In summary, the current outlook presents a favorable scenario for the Chilean peso, though it will be crucial to closely monitor China's economic developments and the global context, as these are key factors for the continuation of this trend.
Pepperstone doesn’t represent that the material provided here is accurate, current or complete, and therefore shouldn’t be relied upon as such. The information, whether from a third party or not, isn’t to be considered as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product or instrument; or to participate in any particular trading strategy. It does not take into account readers’ financial situation or investment objectives. We advise any readers of this content to seek their own advice. Without the approval of Pepperstone, reproduction or redistribution of this information isn’t permitted.
Two key factors explain this strong performance of the Chilean peso. First, the broad weakness of the U.S. dollar has facilitated a recovery in CLP. Second, and perhaps equally important, is the exceptional performance of copper, which has registered an increase of nearly 22% so far this year, providing crucial support to the Chilean currency, given the local economy's high dependence on the export of this metal.
In particular, the recent strength of the Chilean peso received an additional boost following the release of a series of positive economic indicators from China, Chile's largest trading partner. At the start of this week, China reported a moderation in the decline of new home prices, marking the slowest drop in the last eight months. Additionally, industrial production exceeded expectations, growing 5.9% year-over-year in January-February, with key sectors such as computing, communication, and automobiles leading the expansion. Another factor positively received by investors is that retail sales accelerated to 4.0%.
Beyond these favorable results, new government measures have emerged to stimulate domestic consumption, including subsidies for families and specific actions to strengthen Chinese consumers. This measure, in my view, is extremely relevant, especially in an environment where China is seeking to diversify its economy, which has experienced development constraints through the real estate sector and faces uncertainty in external demand due to trade tensions with the West. However, if Japan has taught us anything, it is that this process of changing consumer habits can be more complex than initially expected.
Overall, this data is particularly relevant considering the current trade tensions between the United States and China. In fact, if the Chinese economy manages to remain stable despite U.S. trade aggression, this would most likely continue to benefit the Chilean peso.
From an operational perspective, the market is focusing on the 900 Chilean pesos per dollar level, a key level where the currency faced resistance throughout 2024. A confirmation of this movement could open room for further peso appreciation in the short term.
In summary, the current outlook presents a favorable scenario for the Chilean peso, though it will be crucial to closely monitor China's economic developments and the global context, as these are key factors for the continuation of this trend.
Pepperstone doesn’t represent that the material provided here is accurate, current or complete, and therefore shouldn’t be relied upon as such. The information, whether from a third party or not, isn’t to be considered as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product or instrument; or to participate in any particular trading strategy. It does not take into account readers’ financial situation or investment objectives. We advise any readers of this content to seek their own advice. Without the approval of Pepperstone, reproduction or redistribution of this information isn’t permitted.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Global risk Warning CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading in CFDs. You should consider whether you understand how CFD
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.