MercoPress. South Atlantic News Agency

Chilean peso stronger and stronger.

Following positive news about a bull market for copper and a strong recovery of the US economy in the third Q, the Chilean currency kept appreciating against the US dollar.

In Santiago money markets the US dollar was selling at 627 Chilean pesos, a five pesos drop from Wednesday and the strongest for the Chilean currency since June 2001.

Chilean Central Bank authorities discarded any immediate intervention to stop the plunge of the US dollar in local markets.

"We have a flexible exchange rate and we have intervened exceptionally when faced with short term turbulences; today we're quiet distant from that situation", said José de Gregorio a member of the Central Bank board.

The US dollar has depreciated over 20% so far this year against the Chilean peso and many analysts believe that an exchange rate of 600 pesos to the US dollar could not be far away.

Mr. de Gregorio pointed out during a financial forum in Santiago that in spite of demands from Chilean exporters, the Central Bank will not intervene to prevent the constant plunge of the US currency in local markets.

"We're not facing a delicate situation, so there's no need for intervention", stressed Mr. De Gregorio.