MercoPress. South Atlantic News Agency

US currency gaining lost ground in Chile: 500 pesos per dollar

The US dollar is expected to open with a strong push in the Chilean money market on Monday having closed on Friday above the benchmark of 500 Chilean pesos, the highest so far this year.

In spite of a slight slip on Friday following information about May inflation in United States, which was better than expected at 0.6%, according to local market analysts the US dollar will retain the ground recovered when it begins operations on Monday. The US Federal Reserve is scheduled to meet next June 24/25 when interest rates are expected to remain unchanged and possibly hiked, since chairman Ben Bernanke and several other members of the board have anticipated that the greatest threat to the US economy is now inflation and a depreciated dollar. If this is the case, the US dollar is expected to inch further higher against other leading currencies including the Euro which received a blow when Ireland voted in a referendum against the Lisbon integration treaty. The Chilean peso and the Brazilian Real were among the currencies which most appreciated against the US dollar this year. The US dollar just a couple of weeks ago, was selling at 460 Chilean pesos.