Forex News

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.

The Chilean currency had a weakening performance today, as the copper, one of the main exports of the South American nation declined, damping demand for the peso.

Chile’s is one of the world’s main copper producer and today this metallic commodity went up after a U.S. report, pushing the Chilean peso to higher levels as risk aversion declined among traders.

The Chilean peso hit the weakest level in three weeks as the national central bank slashed the benchmark interest rates to a record low for the South American country.

Chile, one of the world biggest copper exporters, is witnessing its currency to fall against all majors as the price of the metallic commodity declined due to a new wave of pessimism, which may decrease demand for metals.