MercoPress. South Atlantic News Agency

US dollar falls to lowest rate in a year vis-à-vis the Chilean Peso

Analysts predict the US currency could fall to 510 CP

The US dollar fell to an exchange rate of Chilean Pesos 528 on Tuesday, the lowest rate since September 2008, a tendency confirmed in Wednesday’s trading. Since the beginning of 2009, the dollar has fallen 113 Chilean pesos.

The fall was mostly due to external factors, namely the greenback’s struggle against other currencies and the ballooning US budget and trade deficits.

The dollar may well continue its descent, analysts say, depending on variations in the stock market and copper market.

If copper is up and the Dow Jones is down, the dollar may fall again. The exchange rate could fall as low as CP$510, anticipate some Santiago money market analysts.

Although the Chilean peso depreciated 22.3% with respect to the dollar in 2008, since the beginning of 2009 it has appreciated 21%, ranking fifth among countries worldwide in the percentage it has appreciated with respect to the dollar in 2009.

In Latinamerican, only the Brazilian Real beat the Chilean peso in this measure, with 31% appreciation with respect to the US currency.

By Meera Pandit - Santiago Times