Crisis in Chile: peso hits an all-time low amid unrest
Slowing mining data and political unrest are hurting the value of the South American country’s currency.
Chile’s peso slumped on Wednesday to an all-time low amid poor mining data and domestic unrest, sliding 1.5 percent to 737.53 to the United States dollar while stocks tumbled 3.1 percent to an eight-week low.
The South American country’s manufacturing production also dropped in September compared with where it stood a year ago, government data showed.
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Analysts worry about deteriorating economic activity in Chile – the world’s biggest producer of copper – as a recent political crisis has seen union workers at BHP’s Escondida copper mine go on strike.
President Sebastian Pinera said Chile will not host the Asia Pacific Summit next month. The US and China were expected to sign a partial trade agreement at the summit, but Reuters reported that US officials are warning the deal might not be ready by then.