The Chilean peso rose today as the inflation is expected to jump to the highest level in two years, causing the analysts to scrap forecasts that the interest rates won’t be increased.

Chilean official announced plans to buy the US dollar, weakening the peso initially, but causing the speculation that the inflation may surge to 3.6 percent by the end of the year. Higher inflation expectations prompted the analysts to expect the interest rates hike, perhaps to 3.5 percent.

USD/CLP fell from 491.15 to 488.45 as of 12:29 GMT today.

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