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USDCLP Back Below 700, Copper Another 2.5% Stronger

CHILE
  • USDCLP closed back below the 700 level on a day where regional currencies benefitted from improved global sentiment. Copper prices have extended higher (+2.5% today) and despite local demand halting the momentum previously at these levels in USDCLP, the pair may be set to test the 693 lows in coming sessions.
  • Chile's lower house approved a progressive rate on copper sales in what could become one of the heaviest tax burdens in global mining, potentially stalling investments and boosting prices. This is a move opposed by the president and industry. The bill will now be sent to the Senate, from which it requires final approval.

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