THE CHILEAN PESO IS AT A SIX-YEAR LOW AND THE COLOMBIAN PESO IS AT AN 11-YEAR LOW, AS BOTH COUNTRIES ARE STRUGGLING WITH THEIR DEPENDENCE ON COMMODITY EXPORTS.
The Chilean peso hit a six-year low as copper prices are dropping, and the Colombian peso is also falling to a multi-year low as Brent crude oil drops below US$50 per barrel. Both countries are dependent on their respected commodity exports.
The peso traded at CL$680, a level not seen since November 2008, and just shy of being the lowest since 2003. Copper dropped to US$2.34 per pound on the COMEX for September delivery as the Chinese manufacturing sector saw a steepening of their contraction in July.