Chile: Chilean peso continues to strengthen in May
May 15, 2015
In May, the Chilean peso strengthened further against the U.S dollar recently after reaching a multi-year low in mid-March, thus reversing the depreciating trend that had been in place for almost two years. The depreciation of the Chilean peso between May 2013 and March of this year mainly reflected a slowdown in mining sector activity.
The currency has appreciated against the U.S dollar lately and on 15 May, it traded at 594.6 CLP per USD, which marked its strongest value since 21 November 2014. The figure was 3.1% stronger than on the same day of the previous month, although it was 7.5% weaker on an annual basis. The recent appreciation of the currency mainly resulted from more positive prospects for the Chilean economy after Q4 GDP data showed that economic activity accelerated notably compared to the previous quarter. A pick-up in GDP growth combined with falling inflation and recovering copper prices should bode well for the Chilean peso going forward.