The US dollar experienced notable volatility in late July and early August 2025 amid shifting expectations around Federal Reserve interest rate policies and economic data releases. Following a rate cut by the Central Bank, the dollar rose to nearly 980 Chilean pesos, reaching its highest levels since April. However, after Federal Reserve Chair Jerome Powell pushed back against market expectations of further rate cuts, the dollar surged more than 10 pesos. Despite this, the dollar closed lower on July 31, though it posted a monthly gain of over 40 pesos, ending a six-month downward trend. On August 1, a weak US nonfarm payroll report and disappointing economic activity data from Chile (Imacec) led to a sharp decline in the dollar below 970 pesos. These developments also weighed on Wall Street, which opened and closed with losses, while US Treasury yields fell as traders increasingly priced in additional Federal Reserve rate cuts.