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1/29/10

Chart of the day is....

.....the Chilean Peso (CLP vs US Dollar, 3 month chart.

The CLP has dropped nastily versus the greenback in the last few days. This Bloomie note on the deal gives us the lowdown:

“There’s a bit of a trifecta going on in Chile,” said Benito Berber, an economist at RBS Securities Inc. in Stamford, Connecticut. “The external backdrop isn’t helping, with concern about China decelerating, along with the changes in the AFP regulations, which indicate an increase in dollar buying through the next 90 days.

“And today we got disappointing industrial production and sales data,” he said. “It’s going to be a noisy, jumpy recovery, both externally and domestically for Chile.”

So fears of the dreaded W aren't just confined to the North; LatAm's wannabe serious country is getting the jitters too, tycoon saviour at the helm or no.