Chile Exchange Rate

Chile

Chile: Chilean peso reaches weakest point in over five years

October 13, 2014

In September, the Chilean peso (CLP) has been losing ground against the U.S dollar, continuing the trend that began in February this year. On 30 September, the peso traded at 598 CLP per USD, which was 1.9% weaker than on the same day last month and 18.4% weaker on an annual basis. The currency reached its weakest point since April 2009 on 29 September, when it traded at 601 CLP per USD.

The depreciation of the Chilean peso comes as a result of a weaker growth outlook for the domestic economy, as well as a higher probability of the U.S adopting a tighter monetary policy. The expectation that the Fed will soon start to hike interest rates has decreased demand for risky currencies such as the Chilean peso. In addition, the falling price of copper—Chile’s main export—is also contributing to the depreciation of the peso.

LatinFocus Consensus Forecast panelists expect the peso ending this year at 590 CLP per USD. Next year, the panel sees the currency trading at 596 CLP per USD.


Author: Ricard Torné, Head of Economic Research

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Chile Exchange Rate October 2014

Note: Exchange rate, CLP per USD (eop).
Source: Thomson Reuters


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