The Chilean peso declined against the US dollar today after the nation’s central bank revised its growth outlook down and expressed a dovish monetary policy outlook.
Chilean Peso CLP
Central Bank: Central Bank of Chile
Public Debt to GDP Ratio, 2015: 17.4%
Trade Balance, 2015: $5.82 bln.
Inflation, 2015: 4.4%
High-yielding interest rates
Major commodity exporter
Factors of Weakness
High-risk emerging country
The Chilean peso is the currency of Chile. Its modern version replaced the old currency in 1975. The currency is supported by the view on the economy of Chile as one of the most stable in South America. Chile produces about 1/3 of world copper output; therefore prices for copper have great influence on performance of the peso.
Chilean Peso News Archive
The Chinese yuan fell today even as data released over the weekend showed that the nation’s trade balance improved. The caveat is that the improvement was a result of the sharp drop of imports, not due to growth of exports (which actually also fell, just not as much as imports).
The Chilean peso fell against the US dollar today as the nation’s central bank reduced its key monetary policy interest rate yesterday for the fourth consecutive time.
The Chilean peso rose with other currencies of emerging markets thanks to the positive risk sentiment among Forex market participants. It allowed the currency to ignore a downward revision to the projected economic growth by the nation’s central bank.
The Chilean peso dropped today after the nation’s central bank left monetary policy unchanged but hinted that interest rate cuts are probable due to the slack in economic growth.
The Chilean peso rallied today as nation’s consumer prices grew with faster pace, suggesting that there is no immediate need for the central bank to stimulate economic growth with additional monetary accommodation.
The Chilean peso managed to log gains today even after the nation’s central bank cut its monetary policy interest rate yesterday for the fourth time in six months.
The Chilean peso sank yesterday, being the worst performer on the Forex market, as copper prices slumped after the news about a company default in China. It spurred fears and drove investors away from raw materials and commodity-related currencies.
The Chilean peso ended yesterday’s trading session weak against the US dollar as the nation’s central bank cut interest rates and signaled about possibility of additional monetary stimulus. The currency rose a little versus the euro at the start of the current trading session.
Chile’s inflation fell even as the nation’s currency was weakening, and this led to speculations that the central bank will reduce interest rates. Such talks weakened the Chilean peso even more.