Economy / Chile
If you would like to subscribe to Emerging Markets Monitor and gain instant access to this article, please click here to subscribe.
If you would like to take a trial to Emerging Markets Monitor please click on the trial link below.
CLP: Peso Comeback Underway
July 2008 | Market StrategySorry, you must be a subscriber to view this article in full. If you are a subscriber please login.
If you would like to subscribe to Emerging Markets Monitor and gain instant access to this article, please click here to subscribe.
If you would like to take a trial to Emerging Markets Monitor please click on the trial link below.
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