Additionally, inflation figures from the largest economy in the world, the US, caused the exchange rate to rise by more than $10 during Thursday’s session.

Although marginally, the price of the dollar continued to regain ground this Thursday, after jumping more than $10 on Wednesday due to the increased inflationary pressures revealed in the latest US Consumer Price Index report.

The currency rose by $1.03 to $955.93 at the close of the Chilean market, moderating after reaching a peak of $961 past noon, according to Bloomberg quotes. Comex copper fell 0.49% to US$4.26 per pound, moving further away from its recent highs. The dollar index stabilized at its highest level since November.

The dollar initially gained ground internationally today following the announcement by the European Central Bank (ECB) about its interest rate decision, suggesting imminent rate cuts in upcoming meetings. However, the US Producer Price Index (PPI), which was lower than expected, exerted downward pressure on the US dollar.

The signals from the March CPI, published in the US yesterday, continued to resonate this Thursday, as its more fixed components revealed persistent inflation that pushed estimates for the first Federal Reserve rate cut from June to September.

The elevated figures of the US CPI will likely have two clear implications for currency markets. The first is that it will generate divergences in official interest rates, and the second is that short-term implied rates will likely be higher worldwide, which will generate greater restraint on the global economy and will be another negative factor for growth-sensitive currencies.