Chilean Peso Drops as Copper Declines

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 posted crescent gains until last week, as optimism and a Chilean central bank dollar selling program caused the currency to rally against the euro and the greenback. After a negative U.S. jobs report last week, the Chilean currency had the biggest loss since April, as a new wave of pessimism concerning the global slump caused risk aversion to rise, making stocks and commodities like the copper, one of the main Chilean exports to fall, reflecting negatively on the South American currency.

USD/CLP traded at 546.70 as of 22:50 GMT, rising from a previous rate of 541.40.

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