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, 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.
The Chilean peso, which was one of the best performance currencies since April, fell significantly as a U.S. jobs report damped demand for risk and emergent market currencies.
A Chilean government plan is likely to continue to push the national currency up, as it will sell $40 million daily in the Foreign-Exchange market, boosting confidence for the South American currency.
The Chilean currency continues its six-month bullish trend as copper price goes up and the national bank is expected to cut interest rates to improve the economy.
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