Chile: Chilean peso appreciates to nine-month high in April
April 15, 2016
The Chilean peso continued to strengthen recently, hitting a nine-month high in mid-April. The appreciation observed in recent months marks a turnaround from a prolonged depreciation that had been in place from May 2013 to January of this year. On 15 April, the currency traded at 663.7 CLP per USD, which was the strongest value since May 2015. The print was 3.3% higher compared to the same day in March and marked a 6.3% gain in value in this year so far. However, compared to the same day in 2015, the reading represented an 8.2% depreciation.
The recent appreciation of the Chilean peso mainly reflects a weakening of the U.S. dollar on expectations that the U.S. Federal Reserve will resume its interest rate tightening cycle later than previously expected. Moreover, the peso was partly supported by a moderate rise in prices for copper, which is Chile’s top export. While copper prices had been on a downward trajectory for over four years and hit a multi-year low in January, prices have recorded modest gains recently.