Chile’s Finance Minister Worried About Strength of Peso

The Chilean peso rose today despite the negative influence that the deadlock in the talks about Greek bailout had on the currency markets. The peso may weaken in the future as Chile’s Finance Minister voiced concerns about impact of the strong currency on the nation’s economy.
The peso has gained 6.2 percent in the last month. Chile’s fruit producers’ federation asked the nation’s central bank to rein gains of the currency. Analysts said that the current exchange rate don’t warrant an intervention.
Chile’s Finance Minister Julio Dittborn certainly sided with those who though the peso is too strong, saying:

Obviously it’s a concern that the peso is strengthening so much. The central bank should evaluate whether it is appropriate to intervene again or not like it’s done in previous years.

Dittborn noted that the government isn’t going to influence the exchange rate directly, but rather will attempt to avoid actions that may cause appreciation of the Chilean currency.
USD/CLP closed at 478.8500 after opening at 480.8000. The currency pair dropped as low as 478.3500.

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