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USDCLP Surges Another 1% Higher

CHILE
  • The Chilean peso has extended yesterday's losses and currently trades down 1.1% against the US dollar. A significant rejection of 700 once again on a weekly closing basis in USDCLP.
  • Newswires suggested yesterday's price action was attributed to local pension funds being forced to rebalance portfolios to comply with the change in allocations toward riskier assets after another recommendation from Felices y Forrados.
  • Newsflow surrounding the third pension withdrawal continues to point towards an increase in political tensions and social unrest.
  • For a third night protestors took to the streets against the government's actions in the courts, with standoffs with police and two buses burned. Various social groups have called for more protests today.
  • Mining unions in Chile have also threatened to take protest action if the government does not drop the bid to block Chileans from drawing down more of their pensions savings early, piling pressure on President Sebastian Pinera's administration. This follows a recent deterioration in virus cases that has plagued his popularity with the electorate, despite providing a successful vaccination rollout.

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