CLP: Peso Comeback Underway

The Chilean peso is having a good month in July. The currency has enjoyed significant gains against a host of global FX, underscoring our view that the bout of weakness observed in Q208 was by no means terminal. Indeed, throughout the second quarter sell-off, which saw the unit plummet by just under 24%, we maintained an end-2008 target of CLP460.00/US$ on the back of our enduring faith in Chile's fundamentals. With global risk aversion and financial market turbulence continuing to bite, there are still significant downside risks to this projection to be wary of. However, we believe that several factors

To read the full article, please choose one of the following options: