Chile: Chilean peso gains strength in April
April 17, 2015
In April, the Chilean peso gained some strength against the U.S dollar after reaching a multi-year low in March. On 17 March, the currency traded at 641.3 CLP per USD, which was 3.3% weaker than that of the same day in the previous month and 12.3% weaker on an annual basis. The depreciation of the Chilean peso mainly reflects a slowdown of the activity in the mining sector.
In the recent weeks, however, the currency has appreciated against the U.S dollar. On 7 April, the peso traded at 610.0 CLP per USD, which marked the strongest reading since 1 January. The figure was 2.5% stronger than that of the same day in the previous month and 10.6% weaker on an annual basis. The recent appreciation of the currency mainly reflects more positive prospects for the Chilean economy after Q4 GDP data showed that growth in economic activity accelerated markedly compared to the previous quarter. Increased GDP growth combined with falling inflation and recovering copper prices should bode well for the Chilean peso going forward.
Author: Dirina Mançellari, Senior Economist