Chile: Chilean peso strengthens on rising copper prices
November 1, 2011
On 28 October, the Chilean peso (CLP) traded at 492.0 per USD, which represents a 4.7% nominal appreciation over the 515.1 CLP per USD recorded on the last day of September. The result represents the strongest monthly appreciation since August 2010. However, the peso remained virtually unchanged in nominal terms against the U.S. dollar compared to the same day last year. Rising copper prices play an important role in the currency's appreciation, as the peso often takes trading cues from the metal industry. Chile is the world's largest copper producer and accounts for a third of global copper supply. The Central Bank maintains its USD 12 billion currency-intervention program designed to pin down the strengthening peso and offset spill-over effects from the metal industry.