In recent months, the USD/CLP exchange rate has increased. The Federal Reserve and Chile's central bank are going in different directions. The head of Chile's central bank has suggested that more rate cuts are on the way.

The USD/CLP exchange rate has shown a triple-top pattern as the Federal Reserve and Chile's central bank move in opposite directions. It reached a high of 993.10 this year and has since dropped to a low of 960.

Chile and the US have varying interest rates, resulting in the Chilean peso falling by over 22% from its peak in 2023. Chile's central bank has cut rates six times since 2023, currently at 6.50%, with plans for more cuts. The Federal Reserve has kept rates steady at a 23-year high of 5.25% to 5.50%.

Analysts predict the Fed may raise rates by 0.25% if inflation remains high. The central banks are likely to continue their divergence, with Chile expected to cut rates further while the Fed maintains its stance. The performance of industrial metals in Chile, particularly copper, is being closely monitored as it rebounds.

The USD/CLP daily chart displays a triple-top pattern, with the pair retracing to a key support level at 956.81. The outlook for the Chilean peso is neutral, with crucial levels at 940 and 993. A break below 940 could indicate peso strength, while surpassing 993 may lead to further weakness.