Chilean Peso Retreats on Fears of Intervention

The Chilean peso fell as signs of economic slowdown in the South American country fueled speculations that the central bank may ease its monetary policy to stem the currency’s strength.
Chilean economic activity growth slowed to 3.1 percent in March from a year ago, slowest since July 2011. Copper, the major Chilean export, fell today. Rodrigo Vergara, the Governor of the Central Bank of Chile, said that the peso should not appreciate further and the central bank may intervene if appreciation will happen.
USD/CLP rose 0.16 percent to 478.14 yesterday and remained little-changed as of 8:27 GMT today.

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