The dollar closed Monday with a nearly $5 drop in the local market, following a surge in copper prices that broke past the $6 per pound mark. The greenback experienced a highly volatile session, driven by fluctuations in the price of the red metal.
Trading began with significant upward pressure on the US currency. At the opening, the exchange rate hit $903, reflecting investor fears regarding a potential escalation of the conflict in Iran.
Geopolitical tensions in the Middle East directly impacted the exchange rate. Donald Trump's announcement regarding a blockade of the Strait of Hormuz and Iranian ports triggered a flight to safety toward the US dollar.
The impact of copper on the currency
The financial landscape shifted in the afternoon as copper posted solid gains. The country's primary export commodity reached $6.01 per pound, marking its highest level since March 2.
This copper rally halted the dollar's climb, which retreated to $892.80 during the session. At the close, the exchange rate stood at $891.41 for buyers and $894.18 for sellers.
The S&P IPSA also posted gains on the Santiago Stock Exchange. The country's main stock index closed up 0.52%, reaching 11,132.84 points.
The market growth was driven by momentum in the mining and related services sectors. SQM-B shares led the gains with a 6.17% increase, followed by Norte Grande at 3.59% and CSAV at 3.19%.
The index began the day steadily, breaking past the 11,000 mark during the morning despite international uncertainty.