Chile: Civil turmoil drives the peso to a 16-year low in November
November 4, 2019
The Chilean peso plunged to a record low against the U.S. dollar at the end of October amid heightened civil unrest. On 1 November, the peso ended the day at 741 per USD, a 1.6% depreciation from the same day in October. The result marked a 6.3% depreciation year-to-date and a 7.1% loss from the same day last year.
The peso’s lackluster performance this year has been driven by low copper prices, as well as broader external uncertainties and trade war turmoil. More recently, the peso fell to a fresh new low following the cancellation of the APEC and COP25 summits on 30 October as the government struggled to quell the wide spread protests that have engulfed the country in the past weeks and dampened investor sentiment.
Author: Nicolás J. Aguilar, Economist