Key Market Views: Cautious Chilean Assets

While we continue to like both Chilean equities and the peso over the longer term due to strong fundamentals, we caution that both could see further weakness over the coming weeks. We have closed our bullish CLP/US$ Key Market View, locking in an implied 3.2% of gains (plus carry), due to the risk that the Banco Central de Chile (BCC) will step-up its dollar purchases in the near future to stem currency gains.

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