Forex News

The Chilean peso had a rally that set it to the highest rate in 2009 stopped after the central bank made a declaration regarding the current currency’s strength.

The Chilean currency managed once again to break a record this Tuesday after the nation’s central bank confirmed that it will remain the interest rates in the country at a record low for the next semester, improving demand for peso-priced assets.

The main Chilean metallic export provided support for the peso to reach the highest level in 16 months versus the greenback as demand for copper is on the rise after global economies showed further signs of recovery this Monday.

The Chilean peso had the highest weekly rise in 5 months after the national central bank did not announce measures to halt the currency’s rally, leaving behind speculations that a government intervention will shun investors from the South American nation.

The commodity export driven economy of Chile is set to growth more than previously expected for the next year in a report published today that helped the national peso to reach the highest level in 2009 versus the U.S. dollar.

The Chilean currency was one of the few traded in foreign-exchange markets that managed to continue a rally versus the greenback, sparked yesterday by a wave of risk appetite that helped emergent market currencies to climb, today, the peso climbed on improved domestic data.

The United States is one of the main destination for Chilean commodity exports, and negative reports towards the end of this week coming from the U.S. affected negatively the South American currency performance.

The Chilean peso was one of the emergent markets currencies that benefited from the latest U.S. reports which fueled high-yielding currencies rally and increased traders’ confidence to purchase riskier assets in economic regions like Latin America and the South Pacific.

The Chilean peso started the week losing versus most of the 16 main traded currencies as metallic commodities, an important source of revenue for the country, declined today.

The Chilean peso posted the biggest decline in August this week as consumer sentiment declined in the United States during the past month, pushing traders away from emergent market currencies.