Chilean peso fell from its recent record high value against the U.S. dollar yesterday as the copper price slid down significantly on the global concerns of thedecveloped economies slowdown.
Although the Chinese economy, one of the biggest copper importer, is still showing a significant growth, the concerns that it will slow down due the global financial crisis are bothering commodity traders. Copper is the Chiles biggest export, which is the major part of the countrys GDP.
The Chiles peso fell down to 449.87 per dollar yesterday from 438.77 per dollar at the previous close. Thats more than a 2.5% fall in a single day the fastest pace of the pesos depreciation against the dollar since 9/11 terrorist attacks on U.S.
The May delivery copper futures lost about 5% in the last two days, as the commodity prices declined world-wide. The pressure of the lower copper prices fell also on other exporting countries currencies Brazil, Australia and South Africa.
The situation is worsened somewhat with the current Easter holiday period in Chile, during which the financial markets are closed in the country, not allowing the domestic traders to hedge out the risks.
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