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USDCLP Gaps Lower At Open, Declines 0.60%

CHILE
  • The Chilean peso has opened on a much more positive note, rising 0.6% and reversing the outlier weakness observed throughout Tuesday trade. Continued strength for regional peers into yesterday’s close appears to be bolstering the struggling Chilean peso today.
  • Inflation expectations for year-end 2023 have marginally been increased in the latest BCCh economist survey to 4.2% from 4.0%, although this has not impacted the expecting easing pace of 75bp for the final two BCCh meetings of the year.
  • Reuters reported on Tuesday that Chile's central bank expects that the recent depreciation of CLP will only have a short-term effect on prices, according to the BCCh governor Rosanna Costa speaking in an interview. She added that the 3% inflation target for the second half of 2024 remains unchanged.

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