MercoPress. South Atlantic News Agency

Chilean peso recovers September level

The Chilean peso experienced a strong recovery this week against the United States dollar and now quotes as before the terrorist attacks of September 11th., that is 670 pesos to the dollar.

In early October the Chilean peso fell to its lowest peak when the US dollar reached 720 pesos. Analysts in Santiago believe the strong recovery of the Brazilian currency (Real), the bouncing back of copper prices and a relief in the Argentine situation were decisive in the changing Chile's financial markets mood.

Another factor has been the constant drop in international interest rates particularly the prime rate among US banks that now stands at 2% and is expected to drop another 25 points, given the official announcement of a recession in America. However analysts expect the Chilean peso to continue its bullish rally.