The Chilean peso traded at 990.2 per U.S
The Chilean peso traded at 990.2 per U.S. dollar on Friday, reaching its highest level since April 10, 2025, according to reporting by Emol.
U.S. Labor Data and Global Bond Yields Drive the Exchange Rate
The Department of Labor reported that the United States created just 29,000 jobs in September, falling far short of the roughly 90,000 positions anticipated by economists. Concurrently, the U.S. unemployment rate ticked up from 4.1% to 4.2%, and previous months experienced downward revisions. Despite the softer employment figures, the greenback strengthened globally as the yield on the 10-year U.S. Treasury bond pushed past 5%, drawing capital inflows toward American markets. Alejandro Weber, dean of the Faculty of Economics, Business, and Government at Universidad San Sebastián, noted that the currency shift stemmed from external and domestic factors alongside altered expectations for the Federal Reserve, which raised its benchmark interest rate by 25 basis points in September to a range of 3.75% to 4%.
External pressures extended beyond North America. Juan Ortiz, senior economist at OCEC-UDP, pointed to rising bond yields across Europe, driven by complex fiscal conditions in France and climbing rates for Italian debt. Uncertainty within international petroleum markets further added upward momentum to the dollar.
Copper Prices and Domestic Economic Pressures Weaken the Peso
Locally, the Chilean peso found little defense in the nation’s primary export. Although copper remained at historically high levels at US$6.51 per pound by the close of the week, the metal registered a weekly decline of 2.6%. Weber observed that copper failed to act as a sufficient counterbalance against the advancing greenback, while Ortiz confirmed that the retreat in metal prices contributed directly to the domestic currency’s depreciation.
The sustained appreciation of the foreign currency carries direct fiscal consequences. Ortiz warned that importers face rising costs for capital goods, intermediate inputs, and final products, which will likely feed into consumer price indexes and inflate living costs through the final months of the year. Weber added that while a softer peso disadvantages import-reliant sectors and complicates inflation convergence toward official targets, it simultaneously enhances international competitiveness for export-driven industries like mining.
Both public and private balance sheets face tighter constraints. Ortiz highlighted that debt issued in foreign currency now requires larger outlays in local currency to service both principal and interest payments.
Looking ahead, market participants anticipate persistent volatility rather than a return to the exchange rates seen during the first half of the year. If U.S. borrowing costs remain elevated and copper prices stay under downward pressure, the peso risks breaching the psychological barrier of 1,000 pesos per dollar.